FX.co ★ Canada 10-Year Yield Steady After BoC Rate Hold

Canada’s 10-year government bond yield held steady around 3.5% after the Bank of Canada left its benchmark interest rate unchanged at 2.25%, in line with expectations. The central bank emphasized that uncertainty remains high amid escalating tensions in the Middle East and newly proposed US tariffs, and reiterated that it stands ready to act if needed, vowing not to allow higher energy prices to trigger persistent inflation. Markets are still pricing in a 25 bps rate hike by December. Even so, the 10-year yield remains below its May peak, mirroring a decline in US Treasury yields as investors speculate that a potential US–Iran agreement could help ease geopolitical tensions.