June 3, 2009 – News Today

Canada Bonds End Higher; Bid Tone Seen Persisting

TORONTO (Dow Jones)–Canadian bonds ended higher Tuesday, outperforming U.S. Treasurys in some maturities and avoiding the volatility that plagued that market during the session.

A persistent bid remains in the Canadian market despite the absence of any key domestic data or other significant market drivers Tuesday.

1.25s 2011 100.08 up 0.08 1.22% vs 1.27%
3.00s 2014 102.41 up 0.09 2.49% vs 2.53%
3.75s 2019 102.74 up 0.28 3.43% vs 3.46%
5.00s 2037 116.44 up 0.46 4.02% vs 4.03%
10-Yr Spread to U.S. 10-Yr: -22 vs -26

One Toronto bond trader said there was a strong appetite for 10- and 30-year bonds from domestic accounts Monday, and the bid tone in the market seems likely to persist.

“We’ve definitely seen swap-related buying,” he added. “We’ve seen buying in the overnight session of very good size in the 10-year sector.”