Canada: 10-Year Bond Yield Stabilizes Around 3.47%

The Canadian 10-year government bond yield stabilized near 3.47% on Wednesday as traders weighed tentative signs of a resolution to the Middle East conflict against increasingly hawkish expectations for the US Fed. This stabilization followed a significant rise in global yields during March amid fears of a prolonged war and surging energy costs. Market sentiment shifted as President Donald Trump indicated that Iran requested a ceasefire and suggested the conflict could conclude within weeks provided the Strait of Hormuz is reopened and secure. These developments helped pull oil prices back from recent highs and reduced the urgency for safe haven assets. However yields found support as fresh US data showed the private sector added 62K jobs in March and retail sales rose 0.6% suggesting the economy remains capable of absorbing shocks. Domestically the outlook remains cautious as Canadian manufacturing performance stagnated in March with the sector index falling to 50.0.