Canada's 10-Year Yield Hits Highest Since April 2024

The Canadian 10-year government bond yield has hit its highest level since April 2024, reaching 3.76%. This surge in borrowing costs follows a global selloff in government bonds, with US Treasury yields rebounding after an initial drop.

The increase in yields is attributed to rising inflation risks and increased credit supply, causing investors to become more risk-averse towards longer-maturity bonds.

Oil prices have remained elevated near multi-month highs, adding to concerns about inflation. However, weaker-than-expected retail sales may indicate softer consumer spending, potentially leading the Bank of Canada (BoC) to keep interest rates unchanged next week.