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The Canadian bond market enjoyed healthy gains in November as bond prices rose and yields fell. Good economic news in Canada and the United States, and there was a lot of it, was generally ignored; investors focused instead on disappointing economic growth in Europe and China. In Europe, speculation continued about potential quantitative easing by the European Central Bank to counter moribund growth and that prompted European bond yields to fall to record lows, with Canadian and U.S. bond yields following in sympathy. In China, the central bank cut interest rates as growth appeared to have slowed below the country’s +7.5% target growth rate. Canadian and U.S. bond prices were also pushed higher by speculators positioning for bond index durations lengthening in early December. The FTSE TMX Canada Bond Universe gained 1.55% in the month. (more…)