20.02.202617:06:31UTC+00Canada 10-Year Bond Yield Hits 12-Week Low

Canada’s 10-year government bond yield fell toward 3.22% on Friday, hitting a 12-week low as investors responded to a landmark US Supreme Court ruling and signs of easing inflation. The court’s decision to strike down President Trump’s global tariffs removed an important source of inflationary pressure and reduced the risk of trade-related supply shocks, triggering a rally in North American sovereign debt. This move added to a subdued domestic backdrop: January CPI slowed to 2.3%, while the Bank of Canada’s trimmed mean eased to 2.4%, underscoring a moderation in price pressures. With the policy rate at 2.25% and officials indicating that current settings are appropriate, markets have flattened the expected rate trajectory and compressed the term premium. Additional downward pressure on yields came as oil prices reversed part of their weekly gains despite a 9-million-barrel draw in US inventories. Overall, the decline in yields reflects growing confidence in a stable inflation outlook as global trade uncertainty diminishes following the legal setback for the White House.