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Small Rally In GoCs, USDCAD Remains Elevated

CANADA
  • FI: GoC yields sit 1bp lower across the curve shortly after open, following yesterday’s bear steepening (2YY +5.6bps, 10YY +8.5bps).
  • The curve has steepened in recent days with 2s10s up from low of 25bps on Fri to 39bps but still marks levels last seen in Nov-2020.
  • FX: USDCAD sits 0.15% higher as it roughly consolidates yesterday’s retracement from Tuesday highs. At 1.2829, it remains at the high end of the post Russian invasion range.
  • Accordingly with today’s risk-off sentiment, CAD sits up against European currencies, lower against other majors.
  • Ahead: US CPI Feb (0830ET), Canada IIP Q4, Canada to sell C$3.5B 2Y GoCs (1200ET)

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