Free Trial

Minimal Pullback Of Post-BoC Rally For GoCs

CANADA
  • GoCs continue a belly-led cheapening (5YY +7bps), outperforming Tsys (5YY +12bp) but with outperformance most pronounced at the front end (+5bp vs +13bp).
  • Outperformance comes despite a small beat for monthly Canadian GDP, although that only kept it in line with latest BoC forecasts used to justify a downshift to a 50bp hike this week.
  • The net result is 2Y yields 20bps lower than pre-BoC decision (Can-US yield differential near post-pandemic lows of -56bps) and 10Y yields 18bps lower in a near parallel shift lower in the curve (2s10s -60bps).

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.