Canada 10-Year Bond Yield Rebounds Sharply

2026-03-02 15:59 By Felipe Alarcon 1 min. read

The yield on Canada’s 10-year government bond surged past 3.22%, tracking a global move into safer assets as a massive escalation in Middle East warfare reshaped market expectations.

While domestic yields initially fell on news that the economy shrank by 0.6% in the final quarter of last year, the sudden 8% spike in oil prices following the closure of the Strait of Hormuz has revived fears of a fresh inflation wave.

This global pressure mirrored a jump in US Treasury yields, as investors worried that rising energy costs would force central banks to keep interest rates higher for longer.

Despite the local manufacturing PMI hitting a 13-month high of 51 in February, the bond market is now caught between a cooling domestic economy and the threat of global price shocks.

While Canada’s trade status remains relatively secure compared to peers facing new US tariffs, the risk of a prolonged regional war has pushed yields off their recent three-month lows.



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