Canada 10-Year Yield Hits Two-Year High Amid Inflation Risks

The Canadian 10-year government bond yield reached its highest level in over two years, hitting 3.8% in September.

This increase comes after the Bank of Canada (BoC) highlighted upside risks to inflation at its recent meeting.

The BoC kept its key policy rate unchanged at 2.25%, as widely expected, but noted that inflation risks had increased due to new tariffs and growth uncertainty.

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