15.10.202615:06:12UTC+00Canada 10-Year Yield Hits Five-Week Low

Canada’s 10-year government bond yield declined to about 3.80% in October, its lowest level in five weeks, mirroring a broader drop in global yields as a selloff in technology and AI stocks pushed investors toward safe-haven government debt. Doubts about the sustainability of AI-related spending in a high-interest-rate environment intensified this shift to safety. At the same time, robust Canadian manufacturing figures strengthened expectations that the Bank of Canada could raise interest rates at its next meeting. Manufacturing sales climbed 1.5% month-over-month to C$79.9 billion in August 2026, exceeding forecasts for a 1.1% gain and marking the strongest increase since April. This upbeat data stood in contrast to signs of a cooling economy: employment fell by 68,300, well below expectations for a 7,000 increase, indicating a weaker start to the third quarter.