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Potential For Hawkish Surprise To Disrupt Significant Rally

CANADA
  • GoCs broadly consolidate last week’s significant rally, little changed across most benchmarks with largest moves for 5YY (-2bps) as they fade cheapening pressure in EU FI with the US out.
  • Last week’s ~25bp decline in front yields (and 38bps from the Jan 6 peak pre US payrolls, ISM services) could be tested if there any hawkish surprises in the BoC surveys ahead (or perhaps existing home sales at 0900ET), although any reaction could be temporary with CPI tomorrow.

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