Canada's Five-Year Yield Surges to 3.63% Amid Oil Price Hikes

Canada's five-year government bond yield surged to 3.63% on Thursday, rising nearly 15 basis points from the previous day.

This increase marks a new high for the benchmark and extends its climb beyond the previous 52-week mark.

The jump in yields is partly attributed to August producer prices rising 0.4% from July and 5.4% year-over-year, as well as U.S. crude oil moving above $100 a barrel.

Scotiabank Economics has also adopted a more aggressive outlook for Canadian monetary policy, with economist Derek Holt expecting the Bank of Canada to hike interest rates by 75 basis points in Q4 through Q1.