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GoCs Soften Further Ahead Of US GDP

CANADA
  • Small gap opening between front-end GoC’s and Treasuries after German CPI, with GoC yields lagging the increase, up 1.5-2.5bps on the day having moved higher ever since open and through yesterday's range.
  • Earlier, the CFIB Business Barometer was little changed in April but saw further increases in expected price and wage increases in the details.
  • Macklem comments reinforced the consideration of a 50bp hike at the Jun 1 meeting, still largely priced.
  • Up next, US GDP ahead and probably of less importance the Canadian SEPH employment report from Feb.

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