Canadian government bonds are in negative territory Tuesday with U.S. Treasurys as fixed-income assets are dragged lower while signs of stability emerge in equities.
The 10-year bond was yielding 1.795% Wednesday, from 1.762% late Tuesday, according to data provider CanDeal. Yields for Canada's two-year bond were at 1.022%, from 1.006%, while the 30-year bond was yielding 2.369%, from 2.338%.
Bond yields move inversely to bond prices.
Canadian bonds were selling off moderately during Tuesday's session as investors continue to digest the news of the proposed 100 billion euro ($125 billion) bailout for Spanish banks announced over the weekend. U.S. Treasurys were also trading lower ahead with new supply of $32 billion in three-year notes to be sold later on Tuesday.
With no significant data releases scheduled for Tuesday, bond markets remain "reasonably range-bound," RBC Capital Markets said in a research note.
That range-bound trade may continue for much of the week as investors view Greece's upcoming elections on June 17 as the next big major market-moving event.