The Government of Canada 10-year bond yield closed at 3.75% Tuesday, its highest level since early August, as a worldwide sovereign bond selloff pushed yields higher everywhere at once. The US 10-year Treasury climbed to 4.79%, the highest since January 2025, while Japan's 10-year topped 3% for the first time since 1996 and Germany's hit a 15-year high. The move reflects oil-driven inflation anxiety and a widening US fiscal deficit rather than anything specific to Canadian growth, arriving one day before the Bank of Canada's own rate decision.
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Brent was the only one of the three to finish above its starting level, while the index and gold both fell.
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The Bank of Canada held its policy rate at 2.25% for a seventh straight time, yet Canadian yields rose as United States yields surged.
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The index fell for the month even though Brent crude gained and the Strait of Hormuz stayed shut, because rising United States bond yields outweighed oil and gold.
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