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Short-End Bonds Sell-Off On Ontario Easing Restrictions

CANADA
  • 2Y GoC yields have moved higher since Ontario’s Premier Ford confirmed plans to gradually lift Omicron-linked restrictions from Jan 31.
  • The 2Y sits at 1.277%, +2.6bp from the session low, of which a bit over 1bp has come following the announcement, to 1.277%. It moves closer towards the new post-pandemic high of 1.286% touched early yesterday in Asian trade.
  • With relatively little reaction in the 10Y, the 2s10s spread is towards month lows at 57.5bps.

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