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05.12.202514:20:29UTC+00Canada 10-Year Bond Yield Rises to 2-Month High

The yield on Canada's 10-year government bond climbed above 3.29%, reaching its highest point since early September. This movement occurred as markets adjusted their expectations for interest rates following a stronger-than-anticipated employment report. In November, unemployment fell unexpectedly to 6.5%—the lowest level in 16 months—with the number of unemployed decreasing by approximately 80,000, bringing the total to about 1.5 million. This significant reduction in labor market slack increases the likelihood that the Bank of Canada will pause any further easing measures. Since the rate cut in October, the Bank of Canada has communicated the conclusion of an active easing phase, emphasizing a data-driven strategy. The central bank intends to halt easing efforts if economic activity and inflation levels are more robust than anticipated.

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