Canadian bonds drop

The Canadian bond prices were lower across the curve on Friday following the jobs data, but the selling began on both sides of the border even before the release of the employment reports, analysts said. "Better than expected jobs reports might feed stronger than expected near-term growth views.
But at the same time the take back is that it makes markets nervous that perhaps central bankers are going to take the punch bowl away earlier than expected," said Derek Holt, an economist at Scotia Capital. The two-year government bond fell 28 Canadian cents to C$99.97 to yield 1.268 percent, while the 10-year bond slipped 67 Canadian cents to C$103.50 to yield 3.32 percent.