Invesco’s Hooper Says Canada Bond Yields Are ‘Ahead of Reality’
- Canada 10-year yields have narrowed gap with U.S. Treasuries
- A central bank move in 2022 would be premature, manager says
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Government bond yields in Canada have risen too far, too fast and don’t reflect the long economic recovery ahead, according to an Invesco fund manager who runs part of the firm’s $300 billion fixed income portfolio.
Canada’s benchmark five-year bond now has the highest nominal yield among the Group of 10 countries, after investors priced in growth, higher inflation and a boom in commodity prices. The yield on the 10-year note has more than doubled this year, to just below 1.5% as of Tuesday morning, putting it within 10 basis points of U.S. Treasuries.