Canada’s 10-year government bond yield traded around 3.68% in November, holding near a two‑month low as deepening global equity losses drove investors toward safe-haven government debt. In the United States, Democrats secured majorities in both chambers of Congress in the midterm elections, stoking concerns about tighter regulation of AI-related infrastructure.
Market participants are also staying cautious ahead of upcoming labor market reports in both Canada and the US. Canadian employment is projected to increase by 13.6 thousand in October, following a steep decline of 68.3 thousand in September—the largest drop in seven months and sharply below expectations for a 7 thousand gain. The figures are likely to provide further guidance on the Bank of Canada’s (BoC) policy trajectory.
At its most recent meeting, the BoC raised its benchmark interest rate by 25 basis points to 2.5%, its first hike since 2023, in line with expectations. Policymakers also upgraded their inflation and growth forecasts. Annual inflation rose to 3.1% in September, the highest level since May’s 3.2%, although it came in slightly below the 3.2% consensus estimate.
