Canadian bonds easier

Domestic bond prices weakened on Friday as the market priced in an improving economic outlook and speculation about an earlier than anticipated Bank of Canada rates move, said Guatieri. The market also followed the bigger US Treasury market where debt prices plunged on fears of monetary tightening after comments by the Federal Reserve.
The two-year bond sank 41 Canadian cents to C$99.05 to yield 1.707 percent, while the 30-year bond fell C$1.40 Canadian cents to C$117.20 to yield 3.969 percent. The Canadian market notched a mixed performance against US Treasury bonds, with the 2-year Canadian yield about 73 basis points above its US counterpart, from around 62 basis points on Thursday. The 30-year Canadian yield was about 26 basis points below the US, versus 19 basis points below on Thursday.