The Canadian bond prices retreated in quiet trade on Friday, taking a hit from the strong wholesale trade data, but largely tracking weaker US treasuries.
Traders will be paying close attention next week to January retail sales data, due early on Tuesday, but the highlight could come later in the session, when Bank of Canada Governor David Dodge and Senior Deputy Governor Paul Jenkins address the media.
The two-year bond fell 6 Canadian cents to C$98.14 to yield 3.892 percent, while the 10-year bond lost 24 Canadian cents to C$102.69 to yield 4.145 percent.
The yield spread between the two-year and 10-year bond moved to 25.3 basis points from 25.8 at the previous close.
The 30-year bond fell 49 Canadian cents to C$115.27 to yield 4.125 percent. In the United States, the 30-year treasury yielded 4.718 percent.
The three-month when-issued T-bill yielded 3.76 percent, up from 3.74 percent at the previous close.
The Canadian dollar fell hard against the US dollar and even more steeply versus overseas currencies on Friday, as traders ignored strong Canadian data and instead focused on reduced US rate hike expectations.
The currency finished at C$1.1589 to the US dollar, or 86.29 US cents, down from C$1.1529 to the US dollar, or 86.74 US cents, at Thursday's close.
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