Canada 10-Year Bond Yield Rises for the 2nd Session

The yield on the Canadian 10-year government bond jumped past 3.48%, approaching the two-month high of 3.52% from January 26th and tracking the surge in US Treasury yields as hot US data supported hawkish remarks from Fed Chair Powell.

The ISM PMI for January indicated stronger-than-expected services activity coupled with heightened inflation, aligning with Fed Chair Powell’s remarks that a victory in curbing inflation cannot be declared at this point.

On the other hand, domestically, Canada’s PMI data for January remained contractionary, pressuring the Bank of Canada towards more accommodative monetary policy, limiting the rise of Canadian bond yield.