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Index IDEA: FTSE Russell measures Canadian bond yields as Bank of Canada readies rate announcement

As the Bank of Canada prepares to announce its key policy rate decision and publish its Monetary Policy Report this Wednesday, Canada corporate bonds maturing in 2021 have an average yield of nearly 2%.

Global index provider FTSE Russell recently examined Canadian corporate bond yields through the lens of its FTSE TMX Canada Maturity Corporate Bond Indexes, which provide the basis for a series of Target Maturity exchange traded funds, or ETFs, offered by RBC Global Asset Management. Analysis shows a current average yield for the FTSE TMX Canada Maturity Corporate Bond Indexes, measuring Canada investment grade corporate bonds across a variety of maturities, has a 2017 maturity average yield of 1.3% increasing to an average yield of nearly 2% for Canada corporate bonds maturing in 2021.

Marina Mets, Director at FTSE Russell Canada:

“With investors increasingly interested in the Canadian fixed income markets, we are seeing more interest in our indexes that cover Canadian debt. Because the Canadian fixed income market is so multi-faceted, it is important that investors utilize indexes that can accurately and objectively track Canadian fixed income asset classes across a full range of maturities.”


Stephen Hoffman, VP Exchange Traded Funds, RBC Global Asset Management:

“When investing for income, it is important for investors to have access to tools that show the broad range of yields across the maturity spectrum. This information can be very helpful for investors who are considering laddering their fixed income portfolios.”

The FTSE TMX Canada Maturity Corporate Bond Indexes are designed to replicate the performance of a held-to-maturity portfolio of Canadian dollar-denominated investment grade corporate bonds across a range of effective maturities.

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Views expressed by Marina Mets of FTSE Russell and Stephen Hoffman of RBC Global Asset Management are as of October 17th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

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