The Canadian 10-year government bond yield fell sharply to 3.04% in August, its lowest in over one year, tracking the plunge for US Treasury yields as markets evaluated a batch of economic data. Recent US labor market and manufacturing figures have shifted expectations for a Federal Reserve rate cut in September from 25 basis points to 50 basis points. Domestically, the Canadian manufacturing PMI dropped to 47.8 in July 2024 from 49.3 in June, marking the steepest contraction since December and extending the downturn to 15 months, driven by significant declines in output and new orders amid challenging market conditions and heightened inflation concerns. This has prompted the Bank of Canada to prolong its rate-cutting cycle, further limiting support for yields. Additionally, preliminary data suggests the Canadian economy grew by 0.1% in June, building on a 0.2% expansion in May.
Canada 10Y Bond Yield was 3.19 percent on Wednesday August 7, 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 August 7 of 2024.
Canada 10Y Bond Yield was 3.19 percent on Wednesday August 7, 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 2.95 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 2.83 in 12 months time.