Canadian bonds finish mixed

The Canadian bond prices shrugged off the employment report on Friday, because it was largely in line with expectations, and took its cues from movements by their US counterparts instead.
"Bonds are relatively steady, mirroring a similar trend in the US. They didn't show very much reaction to the employment report at all," said Ferley.
It was a fairly uneventful week for the domestic bond market, but next week's slate of economic news, including May numbers for manufacturing shipments and trade, could help perk up action.
The two-year bond fell 4 Canadian cents to C$99.88 to yield 3.064 percent, while the 10-year bond rose 6 Canadian cents to C$103.82 to yield 4.717 percent.
The yield spread between the two-year and 10-year bond moved to 165.6 basis points from 168.4 at the previous close.
The 30-year bond, due 2029, gained 22 Canadian cents to C$106.52 to yield 5.276 percent, while the US 30-year treasury yielded 5.208 percent.
The three-month when-issued T-bill yielded 2.02 percent, up from 2.01 percent from the previous close.
The Canadian dollar fell against the US currency on Friday despite news that Canada created more jobs last month.
The Canadian dollar finished at C$1.3183 to the US dollar, or 75.86 US cents, down from C$1.3167, or 75.95 US cents, at Thursday's close.
Market players may have been initially spooked by a slight uptick in the unemployment rate, analysts said.
About 24,700 full-time workers were hired in June, but the unemployment rate rose to 7.3 percent from 7.2 percent in May as the number of people actively seeking employment outpaced the jobs expansion, Statistics Canada said.
Analysts had expected about 25,000 new jobs, with the unemployment rate unchanged from May, when it hit the lowest point since July 2001.
"The first trade was higher on dollar/Canada. I think the market didn't like the higher unemployment rate, but all said and done, employment growth is still quite strong," said David Ebata, managing analyst at Thomson IFR. "There's no doubt that the economy is still cranking out a very large amount of full-time jobs".