Canadian Bond Yield Edges Higher

2026-07-20 17:06 By Isabela Couto 1 min. read

The yield on Canada's 10-year government bond rose above 3.57% in July, the highest in two months, as investors weighed rising US Treasury yields against soft Canadian inflation data.

US bond yields increased as tensions between the US and Iran escalated over the weekend, sending oil prices higher before they pared most of their gains following comments from Iran's foreign ministry indicating that negotiations with the US could continue.

Meanwhile, Canada's annual inflation rate eased to 2.8% in June 2026 from 3.2% in May, slightly below forecasts of 2.9%.

Gasoline prices increased at a slower pace, while the Bank of Canada's preferred core inflation measures fell to their lowest levels in more than five years, reinforcing the BoC's view that the impact of higher energy costs stemming from the Middle East oil supply crisis is not spreading broadly throughout the economy.

The softer inflation data reduced expectations of further Bank of Canada interest rate hikes this year.



News Stream
Canadian Bond Yield Edges Higher
The yield on Canada's 10-year government bond rose above 3.57% in July, the highest in two months, as investors weighed rising US Treasury yields against soft Canadian inflation data. US bond yields increased as tensions between the US and Iran escalated over the weekend, sending oil prices higher before they pared most of their gains following comments from Iran's foreign ministry indicating that negotiations with the US could continue. Meanwhile, Canada's annual inflation rate eased to 2.8% in June 2026 from 3.2% in May, slightly below forecasts of 2.9%. Gasoline prices increased at a slower pace, while the Bank of Canada's preferred core inflation measures fell to their lowest levels in more than five years, reinforcing the BoC's view that the impact of higher energy costs stemming from the Middle East oil supply crisis is not spreading broadly throughout the economy. The softer inflation data reduced expectations of further Bank of Canada interest rate hikes this year.
2026-07-20
Canada Bond Yields Hold Firm
The yield on Canada's 10-year government bond firmed at 3.54% after reaching a two-month high of 3.58% as a rebound in US Treasury yields supported global bond markets. US yields recovered after recent declines, while investors continued to assess the outlook for Federal Reserve policy. Still, a sharper decline in Canadian yields was prevented by the Bank of Canada's relatively hawkish rhetoric. The central bank left interest rates unchanged at its July meeting, as expected, but underscored that growth is set to remain robust in the coming quarters. This was accompanied by an upward revision to this year's inflation projections as the conflict in the Middle East pushed energy costs higher.
2026-07-16
Canada 10-Year Yield Falls on US Treasury Pullback
The yield on Canada's 10-year bond eased to 3.54% from the near two-month high of 3.57% on July 14th, as the impact from the pullback in US Treasury offset support the Bank of Canada's robust economic outlook. US yields pulled back following the combination of soft CPI and PPI readings for June, erasing expectations that the Federal Reserve would hike rates in their next meeting. Still, a sharper decline for Canadian yields were prevented by relatively hawkish rhetoric by the Bank of Canada. The central bank held interest rates unchanged in their July meeting, as expected, but underscored that growth is set to remain robust in the coming quarters. This was combined with an upward revision to inflation projections this year as the war in the Middle East lifted energy costs.
2026-07-15