Canada 10-Year Yield Holds Firm as Fed Keeps Rates Unchanged

Canada's 10-year government bond yield remained steady at around 3.60% in late July, following the Federal Reserve's decision to keep interest rates unchanged.

The Fed's move was widely expected, but three FOMC members dissented in favor of a 25-basis-point rate hike. This possibility keeps investors on edge about potential tighter US monetary policy in September.

Earlier this month, the Bank of Canada held its policy rate at 2.25% for a sixth consecutive meeting, citing the economy's adjustment to recent shocks and easing energy-driven inflation pressures.

However, policymakers also expressed concerns that inflation expectations remain elevated and questioned the durability of the recovery.