The Canadian bond market enjoyed good returns in July, as investors focussed on geopolitical risks in Ukraine and the Middle East, plus the potential negative impact of these crises on the already struggling Eurozone economy. Many equity markets around the world fell in the month as investors sought to reduce their exposure to riskier assets. Demand for bonds as safer, less risky investments helped push Canadian bond prices higher and yields lower. More favourable economic news, particularly out of the United States, was by and large ignored in the risk-off environment. The FTSE TMX Canada Universe Bond index returned 0.63% in July. (more…)