The Bank of Canada held its policy rate at 2.25% Wednesday while warning that upside inflation risk has increased, yet the two-year Government of Canada yield moved just three basis points, to 3.050%. Gold and silver rose instead, and the TSX materials sector gained 2.6%, tracking a second wave of U.S. strikes on Iran and Iranian retaliation rather than the rate decision itself. The muted bond reaction suggests markets read the hawkish tilt as far less significant than the day's war headlines.
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WTI crude settled at $90.76 Wednesday, up 0.60%, after a second wave of U.S.
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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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September 30, 2026
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Canadian yields drifted higher through August even though the Bank of Canada held its policy rate at 2.25% and had no decision to make during the month.
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Gold rallied and gold miner shares carried the TSX higher, while Brent ended the month close to where it began.
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