FX.co ★ Canada 10-Year Bond Yield Retreats

The Canadian 10-year government bond yield slipped below 5.2% as global markets responded to signs of potential de-escalation in the Middle East, following Donald Trump’s decision to pause strikes on Iranian energy infrastructure. The move marks a shift from peak stagflation anxiety toward a tentative relief rally, as WTI crude prices tumbled in reaction to the five-day cooling-off period. In this environment, investors are reassessing their outlook for the Bank of Canada and the Federal Reserve, with major central banks reiterating their willingness to tighten policy further if inflationary pressures do not subside.