Canada 10-Year Yield Extends Three-Year High
Canada’s 10-year government bond yield rose above 4% in October, reaching a fresh three-year high as renewed selling in US Treasuries fueled a broader global bond selloff. The US 10-year benchmark yield climbed to its highest level since 2002, extending a months-long rise in sovereign borrowing costs. Higher oil prices have added to inflation concerns and reinforced expectations of further interest-rate hikes by central banks, keeping government bonds under pressure worldwide. In Canada, the advance estimate showed real GDP rose 0.2% in August, with gains in mining and quarrying and retail trade partly offset by a decline in oil and gas extraction. GDP was essentially unchanged in July, ending a three-month run of growth. The result was in line with expectations but highlighted a weaker start to the third quarter, reinforcing expectations for the Bank of Canada to hold rates. A US ban on various Canadian imports also took effect, further weighing on growth prospects.
Canada’s 10-year government bond yield rose above 4% in October, reaching a fresh three-year high as renewed selling in US Treasuries fueled a broader global bond selloff. The US 10-year benchmark yield climbed to its highest level since 2002, extending a months-long rise in sovereign borrowing costs. Higher oil prices have added to inflation concerns and reinforced expectations of further interest-rate hikes by central banks, keeping government bonds under pressure worldwide. 2% in August, with gains in mining and quarrying and retail trade partly offset by a decline in oil and gas extraction.
GDP was essentially unchanged in July, ending a three-month run of growth. The result was in line with expectations but highlighted a weaker start to the third quarter, reinforcing expectations for the Bank of Canada to hold rates. A US ban on various Canadian imports also took effect, further weighing on growth prospects.