Canada 10-Year Bond Yield Rises to 2-Year high

2026-05-15 16:58 By Isabela Couto 1 min. read

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.



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