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GoCs Selling Off With Treasuries

CANADA
  • GoC yields have been following Treasuries higher of late, with 2Y +1bp and 10Y +5bps, as the longer-end moves back towards levels seen shortly after the FOMC minutes.
  • A realignment in curves sees Can-US yield differentials sit at -10bps for 2Y and -8bps for 10Y, the latter at four week lows.
  • Ahead of today’s budget, front-end yields being cheaper on the day are at odds with the firming in BAX futures.

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