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Tracking Tsys Ahead Of US Housing & CAD Issuance

CANADA
  • GoC yields sit 3-4bps lower through 2-10Y tenors with the 30Y lagging with -2bps.
  • The moves are broadly in line with Treasuries after yesterday’s sizeable GoC outperformance post mixed CPI data saw the Can-US yield differential widen from -7bps to -13bps (currently -12bps).
  • US housing data could see spillover early in the session before domestic attention turns to issuance. Rescheduled 98-, 182- and 364-day bill auctions are at 1040ET after yesterday’s technical issues, before the 2Y re-open at 1200ET.

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