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Ten-Year Bond Yields Converge on U.S. Tax Deal: Canada Credit

Yields on 10-year U.S. and Canadian government bonds converged this week for the first time since May as a tax deal in Washington widened Canada’s fiscal advantage over its southern neighbor.

The yield on the 10-year Treasury rose to 3.27 percent on Dec. 8, or 1 basis point higher than the equivalent Canadian bond. The U.S. 10-year bond yield has increased 26 basis points this week as President Barack Obama and congressional Republicans agreed to extend Bush-era tax cuts, including cuts for the wealthy.