The yield on the Canadian 10-year government bond was above 3.87%, marking a near six-month high and tracking US Treasuries higher, as US inflation and labor data countered sluggish GDP growth, dampening expectations for Fed interest rate cuts. Despite weaker-than-expected US economic growth, the core PCE price index surpassed estimates, alongside a robust labor market indicated by jobless claims at a two-month low, eased pressure for accommodative borrowing costs. Meanwhile, stagnant consumer spending in Canada, as evidenced by no growth in Q1 retail sales, underscored economic deceleration. Recent data also showed domestic annual inflation at 2.9% in March, below expectations, with core inflation measures monitored by the Canadian central bank declining more than anticipated, hinting at expectations for lower underlying inflation. This scenario may prompt interest rate cuts, supporting Canadian government bonds and alleviating the sharper sell-off seen in US Treasuries.
Canada 10Y Bond Yield was 3.90 percent on Thursday April 25, according to over-the-counter interbank yield quotes for this government bond maturity. Historically, the Canada 10-Year Government Bond Yield reached an all time high of 12.44 in March of 1985. Canada 10-Year Government Bond Yield - data, forecasts, historical chart - was last updated on April 26 of 2024.
Canada 10Y Bond Yield was 3.90 percent on Thursday April 25, according to over-the-counter interbank yield quotes for this government bond maturity. The Canada 10-Year Government Bond Yield is expected to trade at 3.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.13 in 12 months time.