The Canadian bond prices rose on Friday, outperforming US treasuries, as the market anticipated a flurry of mostly benign economic data next week. However, with trading volumes light, analysts warned against reading too much into the move.
"Bonds are outperforming the US on low volumes," said Carolyn Kwan, markets economist at Scotia Capital.
"But I think people are probably looking forward to what's going on next week as well." The two-year bond rose 5 Canadian cents to $98.02 to yield 3.814 percent, while the 10-year bond rose 40 Canadian cents to C$103.75 to yield 4.019 percent.
The yield spread between the two-year and 10-year bond moved to 20.5 basis points from 22.9 basis points at the previous close.
The 30-year bond climbed C$1.06 to C$116.18 to yield 4.082 percent. In the United States, the 30-year treasury yielded 4.650 percent. The three-month when-issued T-bill yielded 3.42 percent, down from 3.44 from the previous close.
The Canadian dollar ended higher versus the US currency on Friday, but pared earlier gains as retreating energy prices eroded interest in Canada's resource-based economy.