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Sizeable GoC Outperformance To Tsys On Jobs

CANADA
  • The weak jobs report sees notable GoC front-end outperformance to Tsys (2YY -7.5bps vs -1.5bps Tsys) having gone into the release on a par or slightly underperforming.
  • Moves were potentially capped by the volatility of the data plus a continued acceleration in Y/Y wage growth.
  • However, with the long end also outperforming, it only slightly narrows the gap between US and Canada 2s10s (-23bps vs –48bps) that has opened up over the past month on the implication of the BoC tightening cycle weighing more heavily on growth.

Source: Bloomberg

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