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Sizeable Rally in GoCs

CANADA
  • Today’s sizeable rally in GoCs, outperforming Tsys across the curve, has pulled 2YY down 5bps from yesterday’s post-BOC/FOMC highs to 1.231%.
  • This is in part on lower rate expectations, with BAX futures up as much as 4.5 ticks in the whites and 7 ticks in the reds, taking the curve back to where it was last week after hawkish holds from both.
  • There have been few obvious domestic factors behind the move, although upcoming BoC speak from Macklem and Rogers could have an impact in just under 30mins. Macklem's opening statement will be published at 1500ET.

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