Canada 10-Year Bond Yield Climbs Past 3.48%

2026-03-20 13:16 By Felipe Alarcon 1 min. read

The yield on Canada’s 10-year government bond climbed past 3.48% amid persistent global inflationary pressures and a hawkish shift in North American interest rate expectations.

While headline inflation in Canada decelerated more than anticipated to 1.8% in February and the unemployment rate rose to 6.7% following a loss of 83,900 jobs, the Bank of Canada maintained its overnight rate at 2.25% on March 18th and warned of heightened uncertainty.

At the same time, the US February PPI and a more aggressive stance from the Federal Reserve, drove 10-year Treasury notes to August 2025 highs amid escalating conflict in the Middle East.

Although markets previously prioritized a widening output gap and cooling food costs, the ongoing risk of energy supply disruptions across the Strait of Hormuz has maintained volatility in benchmark rates.

The 10-year benchmark is now following a broader rise in global yields as investors brace for one rate cut at most this year from major central banks.



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