Even though the anchor trends for both the UK gilt market and the Canadian 10 year bond market are negative, a good relative value trade has appeared.
Gilts had a bad day yesterday for whatever reason [the reason doesn’t really matter]. At the same time Canadian bonds outperformed their U.S. counterparts. Here’s how the charts look
[Gilts first] :
And here are the Canadians:
And here’s the chart of how Canadians compare to gilts:
