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GoCs Sitting Cheaper Pre-Budget With 10Y Yields Highest Since Mar 10

CANADA
  • GoCs continue to sit cheaper, led by the 2Y with yields +9.4bps on the day close to session highs in broadly similar moves to Tsys ahead of the Canadian budget.
  • There’s been a larger intraday rally along the curve, with the 10YY off 2.96% but still +4.2bps on the day at 2.933% for highs since Mar 10.
  • The 10Y struggles to get back above the 3% that it had held since early Feb. The median response in the BBG economist survey sees this getting to 3.25% 2Q23 but unable to hold such levels with 2.98% 4Q23 and 2.86% 4Q24.

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