Canada 10-year yield rises as oil surge fuels inflation worries By Investing.com

Investing.com -- Canadian government bond yields rose on Tuesday, with the benchmark 10-year yield climbing to 3.806%, as a surge in oil prices toward $100 a barrel heightened concerns about inflation and kept global bond markets under pressure. The 10-year Canada yield was up 2.7 basis points, or 0.71%, at 3.806% around 11:15 a.m. ET. The yield had closed at 3.77% on Sept. 4, according to Bank of Canada data. The move came as Brent crude jumped to $99.46 a barrel, its highest since July 24, after attacks by Iran-backed Houthi militants on Saudi energy facilities intensified concerns over supply disruptions. U.S. crude also climbed to its highest level since June. Higher energy prices have complicated the inflation outlook and reduced expectations that central banks can ease monetary policy quickly. Global bond yields have risen in recent weeks as investors assess the risk that persistent inflation could keep interest rates higher for longer. Earlier on Tuesday, the Canadian 10-year yield was reported at 3.781%, up 0.2 basis points, meaning the move accelerated through the morning. Investors are also looking ahead to U.S. inflation data later this week for fresh clues on the Federal Reserve's rate path, with higher Treasury yields likely to continue influencing Canadian bonds.