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Why are Canadian bond yields surging?

Larysa Harapyn
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⚡ Quantum Brief
Canadian bond yields are surging in April 2026, driven by inflation and growth expectations, according to Earl Davis, head of Fixed Income at BMO Global Asset Management. The conflict in Iran is creating market uncertainty, pulling yields in opposing directions as investors weigh geopolitical risks against economic fundamentals. Davis highlights that bond markets are reacting to two primary forces: rising inflation pressures and shifting growth forecasts amid global instability. Higher yields reflect investor demands for greater returns to offset perceived risks, particularly as geopolitical tensions disrupt traditional economic outlooks. The tug-of-war between inflation fears and growth concerns is intensifying, making Canadian bonds a key barometer for broader financial market sentiment.
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Watch: 'Bonds are driven by two factors; inflation and growth, and the conflict in Iran is creating a tug-of-war dynamic'You can save this article by registering for free here. Or sign-in if you have an account.Earl Davis, head of Fixed Income and Money Markets at BMO Global Asset Management, talks about why Canadian bond yields are surging.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.

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Source: Financial Post

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