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Modest FI Outperformance Awaiting US Data

CANADA
  • GoCs are holding modest outperformance to Tsys seen since the open, more so at the front end with 2YY -4.8bps (Tsys -3.4bps) at week lows.
  • The GoC 5Y is also -4.5bps, with little follow-up today after yesterday’s lowest bid-to-cover since 2009.
  • Spillover from US data is likely most impactful today considering a light local docket.
  • The Macklem and Rogers Senate appearance at 1130ET is unlikely to add to Tuesday’s House appearance or last week’s BoC commentary (i.e. leaving the door open to further hikes if necessary). CAD retail sales more of note tomorrow.

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