Canadian bonds rise tracking U.S. Treasuries; next week’s BoC policy decision in focus

The Canadian bonds gained Thursday tracking firmness in U.S. Treasuries ahead of a host of speeches from the Federal Open Market Committee (FOMC) members’ later in the day. Also, investors will be closely monitoring the impact of the Bank of Canada’s (BoC) monetary policy decision scheduled next week.

The yield on the benchmark 10-year bond, which moves inversely to its price, plunged 3 basis points to 1.64 percent, the yield on long-term 30-year Treasury fell 2-1/2 basis points to 2.24 percent and the yield on short-term 2-year bond slid more than 1-1/2 basis points to 0.74 percent by 12:15 GMT.

The Canadian bonds have been closely following movements in the U.S. debt market. The U.S. benchmark 10-year bond yields fell 6 basis points to 2.33 percent, from yesterday’s high of 2.39 percent.

Moreover, Donald Trump in his public appearance said that he is handling over his personal businesses to his son to avoid future discrepancies. Regarding a relationship with Russia, he claimed that association with Vladimir Putin is an asset, rather than a liability.

Lastly, the upcoming week will remain reactive to a series of significant economic data, highlighted by consumer price inflation and retail sales, which shall provide detailed information on further market movement.

The S&P/TSX Composite Index rose 0.42 percent to 15,491.54 at the close of the trading session on Thursday, while at 12:00GMT, the FxWirePro's Hourly CAD Strength Index remained neutral at -50.74 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex ​