The two-year Canadian bond rose 3 Canadian cents to C$99.07 to yield 3.192 percent, while the 10-year bond gained 11 Canadian cents to C$104.71 to yield 3.91 percent.
The yield spread between the two-year and 10-year bond moved to 71.8 basis points from 71.8 at the previous close.
The 30-year bond advanced 36 Canadian cents to C$114.00 to yield 4.197 percent. In the United States, the 30-year treasury yielded 4.565 percent.
The three-month when-issued T-bill yielded 2.83 percent, down from 2.84 percent from the previous close.
There are other factors including oil, which Canada has an abundance of.
Canada's Dollar Higher on Rate Prospects, Rise in Commodities
``The Canadian dollar remains very firm on the FX market against all major currency pairs,'' wrote Shaun Osborne, currency strategist at Scotia Capital in Toronto. ``Key commodity benchmarks help to support the unit, with gold at a new 17-year high.''
A report today showed an increase in foreign purchases of Canadian securities.
International investors bought C$3.34 billion ($2.83 billion) of Canadian stocks, bonds and other securities in July, Statistics Canada reported in Ottawa. It was the biggest monthly amount this year and exceeded economists' forecast of C$2.3 billion, based on a median estimate in a Bloomberg survey. In June, net purchases decline C$2.37 billion.
U.S. Dollar Falls as Traders Reduce Bets Before Fed Policy Meeting
You may read that in the press, but is in direct contradiction to classical economics. The value of the Loonie (or any other currency) is wholly a function of monetary policy.