Canada 10-Year Bond Yield Eases

2025-09-26 13:14 By Felipe Alarcon 1 min. read

The yield on the Canadian 10-year government bond eased to about 3.2%, halting its recovery from its four-month low of 13.158 seen September 16th as softer US long yields and firmer domestic activity reduced the near term premium investors demanded.

Statistics Canada’s advance estimate showed real GDP essentially unchanged in August with wholesale and retail gains offsetting weakness in mining, manufacturing and transportation which blunted the growth scare that had pushed long yields higher.

At the same time US PCE inflation for August recorded only modest monthly increases in headline and core readings which failed to trigger a material re-pricing of Fed policy and narrowed international rate differentials.

Softer US long yields reduced cross-border pressure on Canada’s long end and removed some upward pull from global real rates.



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