Canada's sovereign yield curve shifted upward across maturities during Monday afternoon trading, with the intermediate 10-year note experiencing the biggest single-session advance.
On the day, the 1-year yield increased by 3.9 basis points to 2.649%. The 10-year yield rose 6.8 basis points to 3.54%, the largest move among the maturities reported. Meanwhile, the 30-year yield gained 5.8 basis points, settling at 3.906%.
The differential between the shortest and longest of the tenors reported widened modestly. The spread between the 1-year and the 30-year yields expanded to 125.7 basis points from 123.8 basis points at the prior close.
Credit market signals remained mixed in the session. Canada’s five-year credit default swaps were unchanged during trading, indicating stability in that specific measure of perceived sovereign credit risk.
Equities moved in positive territory alongside the rise in yields. The S&P/TSX Composite Index closed up 0.2% on Monday, reflecting a mild gain in Canadian equities on the day.
Looking at performance over the past year, the Bloomberg Canada Index of government bonds has gained 2.7%. Over the same twelve-month span, the S&P/TSX Composite Index has advanced considerably more, having surged 34.6%.
These intraday shifts in yields and spreads, together with the unchanged five-year CDS reading and the modest equity gain, provide a snapshot of market moves in both fixed-income and equity instruments on Monday afternoon. The data points above reflect the session's closing levels for the reported maturities, the reported spread change from the previous close, and the year-on-year index returns noted for Canadian government bonds and the main domestic equity benchmark.