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BOE APF PURCHASES

GBP1.147bln of short-dated gilts with offer-to-cover of 1.67x

SEK

EURSEK is now down 1.14%

US TSY FUTURES

Bonds Extend Lows, Yet Only Fraction of Fri's Rally

US TSY FUTURES

BLOCK, 5Y Buy

CANADA
CANADA: VIEW: CIBC note that Fitch's "rating action was not unexpected. All
rating agencies have been pointing out long before the pandemic that Canada's
high debt burden limits its financial flexibility within the AAA category. With
the pandemic, federal and provincial governments are all seeing a rapid
deterioration in their fiscal performance which is pressuring their financial
metrics. We highlight, however, that while Canada's debt burden may be high
relative to the AAA peer group, another important perspective is their relative
standing compared to the G7 and G20 Groups of Countries. On that basis, they
place well. While we cannot rule out that other rating agencies will not
similarly downgrade Canada's rating, we still anticipate that Canada will get
through this crisis with a very high average rating relative to the G7 and G20
peer groups. Moreover, we believe that no downgrades will have a long-lasting
effect on its access to funding in both domestic and international markets. Over
the past year, non-resident holdings of Canadian government bonds has been
stable around 30-35%. While debt will continue to rise in the near-term, debt
affordability remains very high and will help to cushion the financial impacts."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com