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Unwinding Post-1990 Peak Inversion

CANADA
  • GoCs reversed yesterday’s rally at the open, and more so further out the curve, with yields 3-5bps higher on the day. The curve remains heavily inverted but 2s10s pull back further to -93bp (+2bp) after almost touching -100bps yesterday (on an ask basis, mid-dipped below).
  • Can-US yield differentials are within post-Oct BOC ranges at -57bp and -74bp for 2Y and 10Y respectively.
  • A blank docket on Bloomberg although the Finance Department's monthly Fiscal Monitor is expected at 1100ET.

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