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National Bank Comments on Government of Canada Bonds Vs. U.S. Treasuries

BY MT Newswires | TREASURY | 08:23 AM EDT

08:23 AM EDT, 04/01/2026 (MT Newswires) -- The two-year cross-market differential between Government of Canada (GoC) bonds and United States Treasuries trades near 96bps early Wednesday, said National Bank of Canada.

Despite the "choppiness," that's a similar level to where it resided in February and has cheapened only slightly relative to the onset of the war in the Middle East, noted the bank.

The U.S. Federal Reserve repricing seems more justified, in National Bank view, and it doesn't believe that incoming data will reflect enough strength to move the Bank of Canada off the sidelines in 2026.

As such, National Bank remains constructive of GoCs down the curve -- outright and versus their UST counterparts.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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