Canadian 10-Year Yield Eases to 2-Month Low
2026-11-05 16:31
By
Isabela Couto
1 min. read
Canada's 10-year government bond yield edged lower to around 3.68%, its lowest level in more than two months, tracking a broader decline in global bond yields.
The move came amid a broader risk-off sentiment, triggering a renewed global sell-off in technology stocks as investors weighed the potential impact of a Democratic victory in the US on the technology sector and AI-related capital expenditure.
Also, the Democrats' gains could strengthen their position in challenging President Trump's trade policies, potentially affecting Canada.
Meantime, the BoC delivered its first interest rate hike in more than three years in October, as expected.
The BoC signalled that further increases may be necessary to prevent rising energy costs from spilling over into broader inflation.
It also raised its 2027 inflation forecast to 3.1%, from 2.0% in July, while upgrading its growth outlook to 1.0%, from 0.7%.
Despite the latest rate increase, the policy rate remains below the estimated neutral level.