Oil Price Surge Fuels Inflation Worries in Canada

Canada's government bond yields rose on Tuesday as a surge in oil prices pushed toward $100 a barrel and heightened concerns about inflation.

The benchmark 10-year yield increased by 2.7 basis points to 3.806%, its highest level since September 4, according to Bank of Canada data.

The jump in oil prices came after attacks on Saudi energy facilities intensified concerns over supply disruptions, causing a rally in global bond yields as investors assess the risk that persistent inflation could keep interest rates higher for longer.

Investors are also looking ahead to U.S. inflation data later this week for fresh clues on the Federal Reserve's rate path.