Canada Bond Yields Hold Weekly Increase

2026-04-23 14:49 By Andre Joaquim 1 min. read

The yield on the Canadian 10-year government bond was at 3.46% on Thursday, extending the volatile momentum from but remaining higher since the start of the week as elevated energy prices increased the likelihood of a hawkish response by the Bank of Canada.

Oil and refined product prices were sharply higher as commercial vessels crossing the Strait of Hormuz were targeted by both the US and Iran, prolonging the likelihood of suspended tanker flows form the area.

The latest data showed that higher energy prices drove Canada's headline producer price index to surge 2.4% from the previous month in March, above expectations of a 1.6% increase, while the raw materials price index surged 12% in the period, the most since 2020.

Data from the period had already shown that annual consumer inflation surged 0.6 percentage points to 2.4%, aligned with warnings from the Bank of Canada that higher energy prices were hitting inflation expectations.



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