Canada's Bond Yields Rise Amid Persistent Inflation Pressures

Canada's 10-year government bond yield rose on Monday as investors weighed persistent inflation pressures and higher oil prices.

Data released earlier this month showed annual consumer inflation held at the top of the Bank of Canada's target range, with a rate of 3% in August, unchanged from July.

The Bank of Canada has kept its policy rate at 2.25%, warning that a sustained rise in inflation could force it to raise rates, adding sensitivity to government bond yields as markets assess how long the central bank may need to keep policy restrictive.

The rise in longer-term yields reflects a broader global bond selloff, with the 10-year yield standing at around 3.94% at Friday's close and now up 1.4 basis points at 3.954% on Monday.