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Canadian bonds

finish stronger

TORONTO: Canadian bonds closed stronger but gains were limited by a poor showing in the US market after the US quarterly refunding, analysts said on Thursday.

Canada's 9.0 percent of 2025 rose C$0.48 at 103.04 to yield 8.710 percent against the US 30-year at 6.95 percent for a spread of 176 basis points.

"Despite a strong acution in the US, Canada held firm in the narrowing spreads," said Jeoff Hall, senior Canadian analyst at Thomson Technical Data.

Investors reacted favourably to Thursday's 30-year note sale, the last of this quarter's refunding.

The Canadian bond market firmed after Wednesday when the Bank of Canada cut overnight rates by 25 basis points to 6.25-6.75 percent.

In Canada, dealer received details of next week's quarterly auction of five-year bonds. On August 16 the federal government will auction C42.6 billion of 7.5 percent bonds due September 1,2000.

The supply of five-year bonds will weigh down the middle of the bond curve and lower prices next week, Hall said.

Among new issues today, Quebec's Societe Quebecoise D'Assainissement des Eaux set a 150 million mark 7.25 percent 10-year bond, prices at 102, for a spread of 20 basis points over.-Reuter