Canada Bond Yields Rise as Inflation and Oil Prices Keep Markets on Edge
Canada's 10-year government bond yield rose on Monday as investors weighed persistent inflation pressures and higher oil prices. The data showed annual consumer inflation held at 3% in August, unchanged from July and in line with economists' expectations.
The figures offered some relief on underlying price pressures, with the Bank of Canada's preferred core measures remaining close to 2%. However, investors remain concerned that higher oil prices could feed through to broader inflation in coming months.
Canadian bond yields have already moved sharply higher in September, with the 10-year yield standing at about 3.94% on Friday. The rise in longer-term yields also reflects a broader global bond selloff, with rates briefly reaching 5% on Monday as investors priced in greater inflation and rate risks.