Canadian bond prices leapt on Friday on weak November jobs growth in both Canada and the United States that cemented expectations that the Bank of Canada will not raise interest rates next week. Prices rose after Statistics Canada said the economy created just 4,600 new jobs, about one-fifth of what was expected, and then jumped higher after US non-farm payrolls rose a weaker-than-expected 112,000 in the month, while October levels were revised lower.
The two-year bond advanced 28 Canadian cents to C$100.68 to yield 2.895 percent, while the 10-year bond rose C$1.01 to C$105.15 to yield 4.332 percent.
The yield spread between the two-year and 10-year bond moved to 145.2 basis points from 141.9 at the previous close.
The 30-year bond, due 2029, rose C$1.31 to C$112.08 to yield 4.898 percent. In the United States, the 30-year treasury yielded 4.932 percent.
The three-month when-issued T-bill yielded 2.51 percent, down from 2.58 percent from the previous close.
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