The Canadian domestic bond prices, with no Canadian economic reports to consider, ended down on Friday after a big rally on Thursday and ahead of key data next week that includes consumer prices.
Investors cheered comments by a US Federal Reserve member who suggested the fed funds rate may stay on hold in December, which signaled a possible improvement in the global economic outlook, according to Eric Lascelles, chief economics and rates strategist at TD Securities.
"Also, sometimes the market needs a breather after a day like yesterday when you had these almost absurd-sized rallies," said Lascelles. The two-year bond fell 1 Canadian cent to C$100.81 to yield 3.833 percent. The 10-year bond slipped 5 Canadian cents to C$99.02 to yield 4.124 percent.
The yield spread between the two-year and 10-year bond moved to 29.1 basis points from 29.3 at the previous close. The 30-year bond fell 23 Canadian cents to C$112.63 to yield 4.245 percent. In the United States, the 30-year treasury yielded 4.538 percent.The three-month when-issued T-bill yielded 4.02 percent, unchanged from the previous close.