Canadian bonds sag

20 Jul, 2008

The Canadian bond prices, which have been under pressure the past few days, continued to retreat on the wholesale trade data and on stronger Canadian stocks on Friday. The S&P/TSX composite index rose 0.41 percent to 13,515.96 during the session, eating into the safe-haven bid that typically lifts government debt prices.
The two-year bond fell 14 Canadian cents to C$101.01 to yield 3.184 percent. The 10-year bond slid 17 Canadian cents to C$103.70 to yield 3.796 percent. The yield spread between the two-year and 10-year bond was 61.2 basis points, down from 67.0 basis points. The 30-year bond lost 28 Canadian cents to C$114.07 for a yield of 4.158 percent. In the United States, the 30-year treasury yielded 4.663 percent. The three-month when-issued T-bill yielded 2.37 percent, up from 2.33 percent at the previous close.

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