Canada 10-Year Yield Climbs on Strong Jobs Data

2026-08-07 15:25 By Isabela Couto 1 min. read

Canada's 10-year government bond yield rose to 3.65%, approaching the three-month high of 3.66% reached on July 31st, following stronger-than-expected employment data.

Canadian employment increased by 75,100 jobs in July, well above expectations for a 15,000 gain, while the unemployment rate fell to a two-year low of 6.4%.

The stronger labor market raised expectations of a potential BoC rate hike if energy prices remain elevated.

Meanwhile, recent data suggests Canada's economy expanded an annualized 3.4% in the second quarter.

Well above the Bank of Canada's expectation of a 2.5% growth rate.

In July, the Bank of Canada held its policy rate at 2.25% for a sixth consecutive meeting, noting that the economy was adjusting to recent shocks and energy-driven inflation pressures were easing.

However, policymakers warned that inflation expectations remained elevated and questioned the durability of the recovery.



News Stream
Canada 10-Year Yield Climbs on Strong Jobs Data
Canada's 10-year government bond yield rose to 3.65%, approaching the three-month high of 3.66% reached on July 31st, following stronger-than-expected employment data. Canadian employment increased by 75,100 jobs in July, well above expectations for a 15,000 gain, while the unemployment rate fell to a two-year low of 6.4%. The stronger labor market raised expectations of a potential BoC rate hike if energy prices remain elevated. Meanwhile, recent data suggests Canada's economy expanded an annualized 3.4% in the second quarter. Well above the Bank of Canada's expectation of a 2.5% growth rate. In July, the Bank of Canada held its policy rate at 2.25% for a sixth consecutive meeting, noting that the economy was adjusting to recent shocks and energy-driven inflation pressures were easing. However, policymakers warned that inflation expectations remained elevated and questioned the durability of the recovery.
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