Canadian bond prices reversed early losses on Friday after the jobs data and finished flat to higher across the curve as nagging concerns about a global recession convinced dealers to grab hold of more secure government debt ahead of the weekend.
Canadian bond prices either finished higher or comfortably off their session lows as dealers, with concerns about a global recession still on their minds, moved into more secure assets going into the weekend. An early slide in bond prices was due largely to renewed demand for equities at the start of the North American session, but that move was mostly undone.
The two-year bond slipped 1 Canadian cent to C$101.70 to yield 1.902 percent. The 10-year bond rose 27 Canadian cents to C$104.32 to yield 3.708 percent. The yield spread between the two- and 10-year bond was 181 basis points, down from 185 basis points at the previous close The 30-year bond rose 7 Canadian cents to C$112.77 to yield 4.225 percent. In the United States, the 30-year Treasury yielded 4.259 percent.