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The Canadian bond prices finished mixed on Friday, with little change from the previous close, as the market sat on its hands before next week's heavy dose of central bankers and economic data. The US Federal Reserve is expected to raise interest rates on Tuesday, which would bring its fed funds rate above the Bank of Canada's overnight rate for the first time in years.
Bank of Canada Governor David Dodge will speak in Washington on Monday on "Canada's experience with inflation targeting."
The two-year bond dipped 4 Canadian cents to C$100.19 to yield 3.137 percent, while the 10-year bond rose 2 Canadian cents to C$104.88 to yield 4.35 percent.
The yield spread between the two-year and 10-year bond moved to 121.3 basis points from 123.8 at the previous close.
The 30-year bond, due 2029, gained 11 Canadian cents to C$115.01 to yield 4.775 percent. In the United States, the 30-year treasury yielded 4.813 percent. The three-month when-issued T-bill yielded 2.49 percent, down from 2.5 percent the previous close.

Copyright Reuters, 2005

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