Canadian bond prices rise

The Canadian domestic bonds rose modestly on Friday, taking little guidance from the domestic data and instead following the lead of US Treasuries.
Canadian bonds have rallied since June, driving the 10-year bond to its highest level in more than a year, while the 30-year bond is at its highest point in recent memory, pulling its yield below 4 percent. US debt prices rallied as data showed the US manufacturing sector contracted in November for the first time in 3-1/2 years.
The two-year bond rose 17 Canadian cents to C$100.89 to yield 3.781 percent, while the 10-year bond climbed 29 Canadian cents to C$101.07 to yield 3.864 percent. The yield spread between the two-year and 10-year bond moved to 7.9 basis points from 3.3 at the previous close.
The 30-year bond gained 55 Canadian cents to C$129.15 to yield 3.963 percent. In the United States, the 30-year treasury yielded 4.550 percent. The three-month when-issued T-bill yielded 4.13 percent, down from 4.16 percent at the previous close.