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TD Securities Look To Receive CORRA 1y1y (H25-H26)

CANADA
  • Trade: “We see 50bps plus of edge in 1y1y CORRA. When combined with our dovish leans and steepener biases […] we see this as the sweet spot to express long duration in Canada for those in the swap market.”
  • Risks: “A new move higher in CPI would obviously be a big problem for this trade, although with modest growth trajectory in Canada we are comfortable with this risk given the edge we see in the trade.”

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