The Canadian bond prices sank on Friday on the data, particularly at the rate-sensitive short end of the curve. Analysts said some the details of the jobs data were mixed, however, as most of the gains came from full-time jobs, but the manufacturing sector lost jobs, suggesting the past rise of the Canadian dollar is still exacting a toll on the economy.
Rate-sensitive short-dated bonds fell more sharply than their US counterparts, but the effect on longer-dated bonds was slightly more muted than in the United States as US Treasuries felt the sting of the fairly strong US trade data.
Next week will be fairly light in terms of domestic economic indicators, but economists will be paying close attention when Bank of Canada Governor David Dodge makes a speech on Wednesday in Winnipeg.
The two-year bond fell 23 Canadian cents to C$100.12 to yield 2.934 percent, while the 10-year bond lost 65 Canadian cents to C$108.32 to yield 3.891 percent.
The yield spread between the two-year and 10-year bond moved to 95.7 basis points from 99.3 at the previous close.
The 30-year bond sagged C$1.18 to C$122.47 to yield 4.352 percent. In the United States, the 30-year treasury yielded 4.321 percent.
The three-month when-issued T-bill yielded 2.47 percent, up from 2.45 percent from the previous close.
The Canadian dollar surged on Friday, outpacing a generally stronger US currency, as surprisingly strong jobs and trade data firmed confidence in the domestic economy and built the case that the Bank of Canada could soon begin raising interest rates.
The currency finished at C$1.2497 to the US dollar, or 80.02 US cents, up from C$1.2571 to the US dollar, or 79.55 US cents, at Thursday's session close.
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