Canada 10-Year Yield Hits Two-Year High

2026-09-08 14:21 By Isabela Couto 1 min. read

Canada’s 10-year government bond yield rose to 3.80% in September, the highest in over two years, after Canada’s retaliatory tariffs on US goods took effect and raised inflation risks.

The counter-tariffs cover $20 billion of US goods, with duties ranging from 15% to 50% on products including steel, furniture, clothing and electronics.

US tariffs imposed last month targeted $20 billion, or 5%, of Canadian exports to the US.

Higher import prices increased inflationary pressures, while the escalating trade war reduced demand for Canadian bonds as safe-haven assets.

Energy-driven inflation also boosted rate hike expectations.

The BoC held its key rate at 2.25%, noting that inflation risks had increased while new tariffs had made the growth outlook more uncertain.

Governor Macklem said policymakers were prepared to raise rates if inflation remained elevated.



News Stream
Canada 10-Year Yield Hits Two-Year High
Canada’s 10-year government bond yield rose to 3.80% in September, the highest in over two years, after Canada’s retaliatory tariffs on US goods took effect and raised inflation risks. The counter-tariffs cover $20 billion of US goods, with duties ranging from 15% to 50% on products including steel, furniture, clothing and electronics. US tariffs imposed last month targeted $20 billion, or 5%, of Canadian exports to the US. Higher import prices increased inflationary pressures, while the escalating trade war reduced demand for Canadian bonds as safe-haven assets. Energy-driven inflation also boosted rate hike expectations. The BoC held its key rate at 2.25%, noting that inflation risks had increased while new tariffs had made the growth outlook more uncertain. Governor Macklem said policymakers were prepared to raise rates if inflation remained elevated.
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