Canada 10-Year Government Bond Yield Rises on Inflation Concerns

2026-05-11 17:16 By Isabela Couto 1 min. read

Canada’s 10-year government bond yield rose to 3.55% on May 11, rebounding from the two-week low of 3.48% on May 7th as higher oil prices renewed concerns over a potential inflation shock.

Crude prices advanced after US President Donald Trump rejected Iran’s response to a proposed peace agreement, reviving fears of prolonged supply disruptions in the Middle East.

The developments came after March inflation data had already highlighted the impact of elevated energy prices on Canada’s consumer prices, keeping markets alert to renewed upside inflation risks.

The annual inflation rate rose to 2.4%, tying the highest level in one year.

Still, the Bank of Canada signaled that it did not see elevated risks of energy inflation becoming entrenched in its last decision.

The central bank left interest rates unchanged at its latest meeting.



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