Canada 10-Year Bond Yield Climbs After Mixed Inflation Print

2026-01-19 14:23 By Felipe Alarcon 1 min. read

The yield on Canada’s 10-year government bond rose past 3.39% on Friday, rebounding from the early December low of 3.354% reached on January 15th, as firmer headline inflation and higher US Treasury yields reinforced support for Canadian long-end rates.

Headline CPI surprised to the upside at 2.4% in December, complicating the near-term easing narrative, even as underlying pressures continued to moderate, with the median core rate easing to a one-year low of 2.5%.

That mix supports expectations that the Bank of Canada will proceed cautiously on the timing and pace of rate cuts.

At the same time, softer activity indicators, including moderating employment gains, rising unemployment, and fading late-year growth momentum, have limited upside inflation risks and sustained demand for duration.

External support persisted as US Treasury yields climbed amid renewed political uncertainty after President Donald Trump threatened eight European countries with new tariffs.



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