EGBS: Spreads To Bunds Widen Despite Recovery From Lows In Bonds

ERH6 99.00c, sold at 3 in 4.5k.

• CANADA APR CPI +1.7% YOY ON CARBON TAX REMOVAL, PRIOR +2.3%
• BOC CORE CPI MEASURES QUICKEN TO FASTEST IN A YEAR
• CORE TRIM CPI +3.1% YOY FROM +2.9%; MEDIAN +3.2% FROM +2.8%
• CANADA CPI EX-ENERGY +2.9% FROM +2.5%, THE FASTEST IN A YEAR
• CANADIAN APR CORE PRICES BOOSTED BY TRAVEL TOURS AND FOOD

• StatsCan report Tues showed the Bank of Canada's preferred median and trim indicators quickened above the BoC's target band at +3.2% and +3.1% respectively in April. 
• Headline inflation +1.7% in April from +2.3% in March. The deceleration was mainly due to the consumer carbon tax removal.
• CPI excluding energy fastest in a year, +2.9% in April from +2.5% in March. Gasoline prices -18% in April. 
• Travel tours +6.7% and food prices +3.8% moderated decline in headline April CPI. Grocery prices elevated for third straight month.  
• StatsCan said it enhanced its methodology for April's passenger vehicle and homeowner's home insurance price indexes. Also said that next CPI on June 24 will use updated basket weights.
• BOC has said it will support economic growth while ensuring inflation remains well controlled. With its preferred core CPI indicators above its target band, a cut at its next June 4 rate decision is less likely.