Government of Canada Two-year Bonds Richen Vs U.S. Treasuries, notes National Bank

BY MT Newswires | TREASURY | 08:51 AM EDT

08:51 AM EDT, 05/20/2026 (MT Newswires) -- Government of Canada (GoC) two-year bonds have "richened" on a cross-border basis to the tune of 14 bps versus United States Treasuries since the start of this month, with the bulk of that

outperformance stemming from Tuesday's roughly 10 bps move, said National Bank of Canada.

Early Wednesday, the GoC-UST two-year differential is opening slightly richer at -109 bps, added the bank. This is ahead of an auction at midday of $5.5 billion in 2-YR CANADAS.

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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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