Canada Bonds Due in More Than a Decade Yield Less Than Cash
- Corporate issuance picks up as investors hunt for yield
- Derivative traders increase bet on BOC rate cut by September
Photographer: Patrick Doyle/Bloomberg
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Investors in Canada’s debt market are becoming more convinced that the next interest-rate move from the country’s central bank will be down, with bonds due in more than a decade now yielding less than cash.
An investor has to be willing to lend for around 14 years to get more than the 1.75 percent rate that the Bank of Canada currently has as its overnight benchmark. While Canadian bonds due in 2033 yielded around 1.8 percent on Thursday, securities maturing in June 2029 offered just 1.68 percent.