Canada 10Y Bond Yield Hits 22-month High

Canada’s 10-year government bond yield rose to 3.70% in mid-May, the highest in two years, as rising oil prices renewed concerns over a potential inflation shock. Crude prices advanced amid the lack of progress toward a deal to end ship attacks and seizures around the Strait of Hormuz, reinforcing broader stagflation fears and lifting expectations for higher interest rates. March inflation data had already highlighted the impact of elevated energy prices on Canadian consumer prices, keeping markets alert to renewed upside inflation risks. Canada’s annual inflation rate rose to 2.4%, matching the highest level in one year. Still, the Bank of Canada signaled at its latest meeting that it does not see high risks of energy-driven inflation becoming entrenched and opted to leave interest rates unchanged.

Canada 10 Year Government Bond Yield increased to 3.64%, the highest since July 2024. Over the past 4 weeks, Canada 10Y Bond Yield gained 13.80 basis points, and in the last 12 months, it increased 47.05 basis points.

Canada 10 Year Government Bond Yield increased to 3.64%, the highest since March 2026. Over the past 4 weeks, Canada 10Y Bond Yield gained 13.00 basis points, and in the last 12 months, it increased 46.25 basis points.