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Maintaining Day’s Outperformance To US

CANADA
  • Front-end GoCs have pared earlier sizeable gains with 2YY increasing more than 5bps intraday.
  • Unlike the first hour or so after the open where they drove solid outperformance, the cheapening has broadly tracked Treasuries and leaves that 3-4bp widening in the negative Can-US yield differential intact at -55bps.
  • The long-end sees much more limited retracement of earlier gains though, with 2s10s -3bps at -92bps for levels last seen in mid-Dec (US 2s10s -5.5bps).

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