News Analysis
Borrowing costs are rising in Canada, with economists warning that higher bond yields, a contributing factor, could eventually feed through to mortgages, business financing, and the broader Canadian economy.
The 10-year yield for Canadian government bonds has just hit 4 percent for the first time since 2023, while the 30-year bond yield reached 4.3 percent for the first time since 2007.
The problem is not unique to Canada; the increase is part of a broader global rise in long-term government bond yields. Bond markets in the United States, the United Kingdom, Germany, Japan, and Australia have experienced significant increases in recent months, as investors contend with inflation concerns, higher energy prices, increased government borrowing, and uncertainty over monetary policy….