The Canadian bond prices moved lower on Friday, due in part to the solid economic jobs data from Canada and the United States, which some dealers used as an excuse to take profits following sharp gains on Thursday when equity markets were hammered.
The jobs report extends a string of upbeat Canadian data that has shaken bond markets for much of the year, but the latest drop was thought to be rather mild by some considering the strength of the jobs reports.
"You've had two barn-burners today and I'm surprised at how little the market is actually selling off," said Eric Lascellÿes, chief economics and rates strategist at TD Securities. The two-year bond slipped 9 Canadian cents to C$100.27 to yield 4.112 percent, while the 10-year bond fell 37 Canadian cents to C$97.63 to yield 4.304 percent.
The yield spread between the two-year and 10-year bond moved to 19.2 basis points from 18.8 at the previous close. The 30-year bond slid 73 Canadian cents to C$110.51 to yield 4.363 percent. In the United States, the 30-year treasury yielded 4.619 percent. The three-month when-issued T-bill yielded 4.00 percent, unchanged from the previous close.