Canada 10-Year Yield Hits Two-Year High

2026-09-02 15:57 By Isabela Couto 1 min. read

Canada’s 10-year government bond yield rose to 3.8% in September, an over two-year high, after the BoC highlighted upside risks to inflation.

The BoC kept its key policy rate unchanged at 2.25% at its September meeting, as widely expected, but noted that inflation risks had increased while new tariffs had made the growth outlook more uncertain.

It left the future path for monetary policy open, saying it would adjust policy as needed.

Oil prices remained elevated amid supply disruptions stemming from the escalating Middle East conflict, adding to inflationary pressures and hawkish expectations for central banks.

Meanwhile, markets are pricing in a nearly 66% chance of a 25-bps Fed rate hike later this month, up sharply from around 40% last week.



News Stream
Canada 10Y Bond Yield traded above 3.8 percent
Canada 10Y Bond Yield rose above 3.8, according to over-the-counter interbank yield quotes for this government bond maturity.
2026-09-02
Canada 10-Year Yield Hits Two-Year High
Canada’s 10-year government bond yield rose to 3.8% in September, an over two-year high, after the BoC highlighted upside risks to inflation. The BoC kept its key policy rate unchanged at 2.25% at its September meeting, as widely expected, but noted that inflation risks had increased while new tariffs had made the growth outlook more uncertain. It left the future path for monetary policy open, saying it would adjust policy as needed. Oil prices remained elevated amid supply disruptions stemming from the escalating Middle East conflict, adding to inflationary pressures and hawkish expectations for central banks. Meanwhile, markets are pricing in a nearly 66% chance of a 25-bps Fed rate hike later this month, up sharply from around 40% last week.
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