FX.co ★ Canada 10-Year Bond Yield at 7-Week Highs

In April, the yield on Canada’s 10-year government bonds climbed to over 3.18%, marking the highest point in seven weeks. This surge was largely driven by growing trade tensions and widespread uncertainty, which led investors to seek liquidity. The anxiety intensified following President Trump's decision to impose reciprocal tariffs, resulting in a 104% cumulative duty on Chinese imports. In response, China swiftly increased tariffs on U.S. goods to 84%. These aggressive protectionist tactics, along with fears of a looming U.S. recession and ongoing inflation that might restrict further monetary easing by the Federal Reserve, have added pressure to the global bond market. Reports of foreign investors selling off assets and a general move towards holding cash have even affected the usually stable U.S. Treasuries, heightening concerns as the European Union plans its own countermeasures.