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Modest Further Outperformance To Tsys, Housing Starts Ahead

CANADA
  • GoCs in line with Tsys at the front end but see modest further outperformance at the long-end (10YY -3bp, -1bp Tsys) following the weaker growth outlook in the BoC surveys.
  • Can-US diff: 2Y is firmly within the month’s range at -34bp, 10Y lower end at -61bp.
  • Canadian housing starts at 0815ET, with consensus for only a minimal decline in Sept to 265k as they continue to hold up better than sliding home sales.

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