Key insights
- Canadian sovereign yields rose across the curve, with the 10-year yield showing the largest increase. While the S&P/TSX Composite Index saw a slight gain, the rise in Canadian yields could signal tighter financial conditions, potentially creating headwinds for future economic growth and indirectly impacting US equities through trade and investment channels. The effect is limited given the modest scale of the yield increase.
Investing.com -- Canada’s sovereign bond yields rose across the curve during Monday afternoon trading, with the 10-year yield posting the largest increase.
The 1-year yield advanced 3.9 basis points to 2.649%, while the 10-year yield climbed 6.8 basis points to 3.54%. The 30-year yield gained 5.8 basis points to reach 3.906%.
The spread between 1-year and 30-year yields widened to 125.7 basis points from 123.8 basis points at the previous close.
Canada’s 5-year credit default swaps remained unchanged during the session.
The S&P/TSX Composite Index rose 0.2% on Monday.
Over the past year, the Bloomberg Canada Index of government bonds has gained 2.7%, while the S&P/TSX Composite Index has surged 34.6% during the same period.
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