Canada 10-Year Bond Yield Falls

2025-12-03 18:39 By Felipe Alarcon 1 min. read

The yield on Canada’s 10 year government bond fell back to 3.23% after a sharp but short lived rebound that began when hawkish signals from the Bank of Japan pushed JGB yields sharply higher and prompted a partial unwinding of yen funded carry trades which briefly lifted global benchmark yields including Canada’s.

That impulse was reinforced at home by an upside surprise in third quarter GDP at a 2.6% annualized pace which forced markets to reassess the Bank of Canada’s near term easing path and supported a temporary lift in Canadian sovereign rates.

The move lost momentum when US data swung decisively the other way as ADP’s unexpected drop in private payrolls increased the probability of imminent Fed easing, sending US Treasury yields lower and pulling Canada’s 10 year down.



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