FX.co ★ Canada 10-Year Bond Yield Retreats from 11-Week High

Canada's 10-year government bond yield dipped below 3.19% on Monday, retreating from the eleven-week high of 3.27% recorded on April 11th. This shift comes as investors adjust their positions in response to evolving trade policies and ongoing global uncertainties, mirroring trends in other major markets. The U.S. government's temporary waiver for certain tech products, which rescinded the stringent 145% tariff on Chinese imports, has eased concerns of a prolonged economic downturn. Simultaneously, China's calculated countermeasures suggest potential stabilization in the broader trade landscape. These developments have somewhat alleviated the uncertainty surrounding U.S. trade policy's impact, with investors acknowledging that a softening in protectionist tactics could bolster global growth and, in turn, benefit Canada's commodity-oriented export sectors. However, the prospect of future U.S. tariff increases continues to be a concern for market outlooks, despite the current alleviation of immediate pressures resulting in lower yields.