The Government of Canada 10-year bond yield has climbed since late August, tracking a similar move in the US 10-year Treasury yield, which crossed 5 per cent in the same week for the first time since 2007. Both moves are building into a Federal Reserve rate decision later in the week, with bond markets pricing in higher borrowing costs well before the announcement itself. The parallel climb in Canadian and US yields suggests investors are treating the coming decision as the dominant driver this week.
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