Canada 10-Year Bond Yield Extends Decline

2026-03-31 13:08 By Felipe Alarcon 1 min. read

The Canadian 10-year government bond yield tumbled toward 3.45%, extending the retreat from recent peaks as heightening growth concerns and a flight to safety outweighed the inflationary pressure of surging energy prices.

This downward correction mirrored the move in US Treasuries as investors sought refuge in sovereign debt amid the high magnitude of uncertainty regarding the impact of the five week conflict in the Persian Gulf.

While a flash estimate showed February GDP expanded by 0.2% the broader outlook remains clouded by a rising unemployment rate and the potential for a global recession should the supply shock persist.

Despite the spike in crude oil costs Federal Reserve Chair Powell noted that inflation expectations remain grounded which has limited the urgency for immediate policy hikes as central banks assess the fallout from the Iran war.

The 10-year yield had gained significantly in March before this pullback as the market pivoted to prioritizing economic risks.



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