Bonds were up again for the month May, with the overall Universe increasing 1.2% taking the YTD return to 2.4%.
This month the long end of the curve significantly outperformed and the short end underperformed (mid was flat).
We also saw governments outperform corporates by a wide margin across the curve but especially beyond 5 years and on an YTD basis, they have now almost pulled even with corporates.
Here are the numbers:
May YTD
Universe: 1.2% 2.4%
Universe (Gov’t): 1.5% 2.3%
Universe (Corp); 0.3% 2.6%
Short Term: 0.5% 0.7%
Short Term (Gov’t): 0.6% 0.7%
Short Term (Corp); 0.3% 0.9%
Mid Term: 1.1% 2.6%
Mid Term (Gov’t): 1.6% 2.5%
Mid Term (Corp); 0.2% 2.8%
Long Term: 2.5% 5.6%
Long Term (Gov’t): 3.0% 5.3%
Long Term (Corp); 0.5% 6.8%
Yields were rose slighting month over month out to 1 year, while longer dated (1 year and beyond) Canada’s saw decreases in yields for the month ranging from 14 bps to 36bps.
Current Yields:
1 Month: 0.2 %
1 Year: 1.1 %
5 Year: 2.6 %
10 Year: 3.3%
Long: 3.7%
Note – Prime is now at 2.5% in Canada (3.25% in US)
