Canada's March 2034 Bond Finds Unique Spot Amid Steep Yield Curve

The Government of Canada's 3.5% March 2034 bond (ISIN CA135087R713) is an off-the-run issue that sits near the eight-year mark on the curve with roughly 7.5 years of residual life as at September 15, 2026. This conventional nominal bond pays a fixed coupon of 3.5% a year in two semi-annual instalments and repays its face value in full on March 1, 2034.

The bond's price is at 98.035% of face value, a modest discount to par, resulting in an approximate current yield of 3.57%. The yield to maturity is 3.805%, which reflects the coupon income and capital uplift an investor receives as the price pulls back towards 100 by March 2034.

The bond's interest lies in its position between the seven-year and ten-year areas on the curve, where the recent steepening is most visible. The Government of Canada curve is upward-sloping, with benchmark yields ranging from 3.35% at two years to 4.28% at thirty years as of September 11, 2026.

The bond's price and yield are sensitive to shifts in medium- and longer-term yields, which could be influenced by changes in the Bank of Canada's expected rate path, inflation trajectory, or term premium at the ten-year part of the curve. The planned gross bond issuance of about $298 billion for 2026-27 may also impact the market.