Canada Bond Yield Rises as Inflation Concerns and Oil Prices Loom

Canada's 10-year government bond yield rose on Monday as investors weighed persistent inflation pressures and higher oil prices. The 10-year yield was last up 1.4 basis points at 3.954%. Annual consumer inflation held at 3% in August, unchanged from July and in line with economists' expectations.

The data showed that gasoline prices remained a major source of inflation, although food-price growth eased. The Bank of Canada's preferred core measures remained close to 2%, offering some relief on underlying price pressures.

Investors remain concerned that higher oil prices could feed through to broader inflation in coming months, particularly after Brent crude climbed above $100 a barrel. This has added sensitivity to government bond yields as markets assess how long the central bank may need to keep policy restrictive.