The Canadian bond prices rose on Friday, ignoring the higher headline numbers in the economic data, as they were not seen altering the interest rate outlook. "You had a big move down in US yields this week that Canada really was somewhat insulated from, and I think it's just a bit of a catch up for that," said Mark Chandler, fixed income strategist at RBC Capital Markets.
The two-year bond was up 5 Canadian cents at C$102.02 to yield 2.731 percent. The 10-year rose 39 Canadian cents to C$103.16 to yield 3.587 percent. The yield spread between the two- and 10-year bonds was 85.6 basis points, down from 87.8 at the previous close.
The 30-year bond added 98 Canadian cents to C$115.53, for a yield of 4.082 percent. In the United States, the 30-year treasury yielded 4.527 percent. The three-month when-issued T-bill yielded 2.62 percent, up from 2.60 percent at the previous close.