The yield on the Canadian 10-year government bond fell below 3.6%, retreating from the 15-year high of 3.8% from August 22nd, tracking the dip in US Treasury yields after cool labor market data prompted an increased demand for bonds in the secondary market. Still, investors continue to eye the potential of an incoming rate hike from the Bank of Canada amid a batch of strong domestic data. Preliminary results pointed to growth in Canadian manufacturing and wholesale sales, indicating resilience to tighter monetary conditions. Moreover, Canadian inflation exceeding expectations at 3.3% in July, driving policymakers to consider risks of second-round inflationary pressure.
Historically, the Canada Government Bond 10Y reached an all time high of 12.44 in March of 1985. Canada Government Bond 10Y - data, forecasts, historical chart - was last updated on August of 2023.
The Canada Government Bond 10Y is expected to trade at 3.82 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 4.21 in 12 months time.