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GoCs Switch To Outperforming Treasuries After Differing GDP/ECI Implications

CANADA
  • GoC yields have climbed since the 0830ET data, but that’s more to do with the on net stronger than expected ECI offsetting the softer than expected Canadian monthly GDP report that tentatively undershoots BoC recently revised down expectations for Q3.
  • GoCs now trade 1.5bp to 4bp richer, switching to outperformance to Tsys having only climbed 1.5-3.5bps since the data vs 3.5-5bps for Treasuries.
  • USDCAD sees a more modest reaction, only holding about a 15 pip increase, currently at 1.3842 but still within the day’s range.

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