Free Trial

Govt Bonds See Subdued Twist Flattening

CANADA
  • Canadian govt bonds have continued to flatten today, this time twist flattening in a more subdued version to that seen in the US.
  • 2Y yields are +0.5bps at 1.077%, 5Y +0.8bps at 1.509%, 10Y -0.1bp at 1.708% and 30Y -0.3bps 1.947%.
  • 2Y yields remain higher in absolute terms than their UST counterparts (1.077% vs 0.931% for US Tsys) although are still some 8bps below the recent high of Dec 8 whereas the US 2Y is the highest since Feb-2020.
  • There are auctions for 2Y and 5Y bonds on Wed and Thu but with little no local data until Fri and no scheduled BOC speakers, US factors could dominate over the short-term. Powell’s nomination hearing starts at 1000ET today before US CPI on Wed (Canada CPI not until Jan 19 before both BOC and Fed on Jan 26).

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.