Canada 30-Year Bond Yields Hit 2010 High as April Inflation Slows to 2.8%

4 articles · Updated · Bloomberg · May 19

Canada’s 30-year government bond yield climbed to its highest since 2010 even after April headline inflation cooled to 2.8%, below the 3.1% economists expected.
core inflation measures eased to early-2021 levels, suggesting price pressures outside energy have softened and offering little evidence the Bank of Canada needs to raise rates soon.
The market still priced in tighter policy: the two-year yield slipped about 2 basis points to 3.04% but remained well above 2.39% on Feb. 27, and overnight swaps still imply a hike by October.
That selloff reflects a broader global move out of long-dated debt as war-driven inflation fears and widening government deficits push investors to demand higher yields; US 30-year yields hit a 2007 high while UK gilts neared 6%.

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