Economics
Canada's World-Beating Bonds Prove It's All Relative in Market
- Government debt returned 3.6% to lead developed peers in 2015
- Investors look past recession, `so much uncertainty' elsewhere
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With Canada’s economy struggling to rebound from recession, the nation’s government bonds were the best performers this year among major developed economies.
The slowdown at home has put the country’s top-rated government debt in something of a sweet spot. The central bank’s two rate cuts, and expectations for a third, bolster the value of existing bonds. And the country’s dimming economic outlook still remains brighter than that of much of the developed world, which is dealing with a downturn in China, turmoil in the Middle East and an existential crisis in the European Union.