Most Canadian government bond prices fell on Friday, tracking US Treasuries, which dropped on concern over swelling supply to fund costly government stimulus plans. Focus is squarely on the Bank of Canada's rate decision on Tuesday, said Paul Ferley, assistant chief economist, Royal Bank of Canada.
"Markets will be watching for indications that the Bank of Canada might be following the US in terms of introduction of 'unconventional measures' to try to provide more liquidity into the system," he said.
The two-year bond edged up 1 Canadian cent to C$103.29 to yield 0.964 percent, while the 10-year bond dropped 25 Canadian cents to C$113.40 to yield 2.626 percent. The 30-year bond fell C$1.30 to yield 3.549 percent. In the United States, the 30-year Treasury yielded 2.9143 percent.
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