Canada's Bond Yield Drops to Lowest Since May 2022

In a significant market movement, Canada's 2-year government bond yield has plummeted to its lowest point since May 2022, signaling investor concerns over recent trade tensions.

Impact of US Tariffs on Canada and Mexico

The downturn follows the announcement by United States President Donald Trump of new import tariffs against Canada and Mexico. Both nations have vowed to retaliate, raising fears of a trade war that could have global repercussions.

Market Reactions and Investor Concerns

Investors are closely monitoring the situation, as the introduction of tariffs and the potential for retaliatory measures could disrupt global markets. The yield on the 2-year note fell by 10.7 points to 2.543%, while the 10-year note remained steady at 3.064%. The 30-year bond yield also saw a decrease, dropping 9.1 points to 3.147%.