Canada’s 10-year yield hits 3.9% as oil-fuelled bond selloff deepens
Foreign governments and central banks now hold 13% of publicly traded US Treasuries, down from 15% three years ago, while new corporate bond issuance has run 50% to 100% ahead of year-earlier levels, according to Rai’s analysis.
Private investors must absorb a growing share of that supply, and are demanding higher yields as compensation.
What the selloff means for Canadian mortgage brokers
For mortgage professionals, the direction of long-term bond yields now matters more than any single central bank decision. As bond yields climbed to their highest level of 2026, lenders have already been repricing fixed-rate products upward, with the best available five-year fixed rate sitting near 4.04%.
The implications for how Canadian borrowers are reassessing fixed and variable mortgage choices are already reshaping client conversations.
With structural forces keeping long-term yields elevated and the BoC’s next rate decision set for October 28, brokers face the prospect of a persistently higher borrowing-cost environment well into 2027, with the bond market offering little near-term relief.
