Canada's benchmark 10-year government bond yield was around 3.78% at 10:10 a.m. ET, a decline of roughly 1.4 basis points from Wednesday's close of 3.798%. The session saw the yield trade between 3.739% and 3.799%, after earlier reporting at 3.748%, down five basis points.
The U.S. 10-year Treasury yield hovered near 4.74% (later noted at 4.767% in live data), and the Canadian dollar was quoted at approximately C$1.379 per U.S. dollar.
The Bank of Canada left its policy rate unchanged at 2.25% on Wednesday and highlighted a hawkish stance, with Governor Tiff Macklem indicating readiness to raise rates if inflation stayed elevated. Canada’s annual inflation rate has risen to 3%, and markets are pricing in a possible rate hike by December.
The yield pullback coincides with a broader recovery in global government bond markets, which had been pressured by persistent inflation, higher energy prices linked to Middle East tensions, and increased sovereign borrowing that pushed Canadian borrowing costs to multi‑year highs.
Investors are now turning attention to the upcoming U.S. non‑farm payrolls report for clues on the Federal Reserve's next policy move.
