GoC Yield Mostly Lower

GoC yield are mostly lower, tracking alongside similar moves in Treasures that were in turn prompted by the German Bund as the long awaited election result saw German Chancellor Angela Merkel delivered a setback as her political position was weakened.

The 2-year GoC is flat at 1.598%, having ticked higher from opening lows around 1.593%. The 5-year is at 1.803% versus a 1.183% close Friday. The 10-year is 1.5 basis points lower at 2.095%. The S&P/TSX 60 index futures are modestly firmer, contrasting with mild declines on Wall Street in pre-market futures trading.

Crude oil has risen to $51.45 after ranging from $50.80 to $51.00 overnight, supportive of the loonie and the S&P/TSX. But USD/CAD is range-bound, holding between 1.2320 and 1.2350 after picking up from the 1.2260 low on Friday.

The strike at GM’s Cami plant in Ingersoll, Ontario moves into its second week. The Union has made another offer to GM, as reported by the globeandmail.com. Bloomberg reports that the striking workers are “struggling with NAFTA realities”.

Speaking of the North American Free Trade Agreement, the third round of talks began this past Saturday in Ottawa, and the origin rules for autos will be discussed Tuesday or Wednesday, according to Reuters.

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