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The Canadian yield curve steepened in November as 2-year bonds were supported by ongoing Bank of Canada monetary stimulus (in the form of ultra-low interest rates). Yields of 2-year bonds rose only 15 basis points while the yields of longer term maturities rose by more than 30 basis points. 10-year Canada bonds were the worst performing term in the month, as their yields jumped 38 basis points. The shift in Canadian yields was similar to the moves in the United States bond market, although the American shifts were larger. Yields of 2 and 5-year U.S. Treasuries rose 25 and 51 basis points, respectively. 10 and 30-year Treasury yields jumped 52 and 45 basis points, respectively. Interestingly, almost all of these unusually large yield moves in both Canada and the United States occurred within a week of the U.S. election. In the second half of the month, yields were relatively stable. (more…)