Canada 10-Year Bond Yield Drops to Over 2-Month Low

2026-02-11 17:13 By Felipe Alarcon 1 min. read

Canada’s 10 year government bond yield slid toward 3.23%, its lowest level in over two months, as a broad US driven rally in global sovereign debt combined with softer domestic data.

Early February figures showed US retail spending and other inflation indicators cooling, pulling Treasury yields lower and dragging Canadian yields down in tight correlation given the deep integration of North American rate markets.

That external impulse was reinforced at home by January job losses and signs of moderating activity, developments that reduce the probability of renewed Bank of Canada tightening and flatten the expected policy rate path across the curve.

Although the Bank of Canada held its policy rate at 2.25% and maintained a cautious tone, investors have shifted toward pricing steadier or eventually lower rates rather than additional restraint, compressing the term premium and lifting demand for duration.



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