Canada Government Bonds - Yields Curve

COUNTRY • SUMMARY
CANADA

The Canada 10-Year Government Bond currently offers a yield of 3.337%. This yield reflects the return investors can expect if they hold the bond until maturity. Government bond yields are critical indicators of economic confidence and investor sentiment.

The yield spread between Canada 10-Year and 2-Year government bonds is 15.2 basis points (bp), reflecting the difference in yields between long-term and short-term debt.
Typically, long-term bonds carry higher yields than short-term ones.
Current observation: Yield Curve is flat in Long-Term vs Short-Term Maturities.

Canada Central Bank Rate stands at 3.75%, following the most recent adjustment in October 2024.

According to Standard & Poor's agency, the Canada credit rating is AAA.

The current quotation for Canada 5-Years Credit Default Swap is 39.60 basis points. Correspondingly, the implied probability of default is 0.66%.

Table of contents

The first official book of
Build wealth
with Lazy Portfolios and Passive Investing
Set your goal
Use top metrics to evaluate
Choose Bond ETFs to control risk
Join the passive investing strategy
Exclusive new asset allocations in EUR and USD

Canada Yield Curve

A Yield Curve is a graph that shows the relationship between interest rates (or yields) and different maturities of debt for a specific borrower, often government bonds. It typically plots yields on the y-axis and maturities on the x-axis, ranging from short-term to long-term bonds.

The shape of the yield curve gives investors insights into market expectations for interest rates, economic growth, and inflation. A normal yield curve, where long-term rates are higher than short-term, suggests economic growth, while an inverted curve, where short-term rates are higher, can indicate an upcoming recession.

Canada Yield Curve
Canada Government Bonds
7 November 2024

Loading data
Please wait
Show discontinued:
If data are not all visible, swipe table left
Residual
Maturity
Annualized Yield Constant Maturity Zero Coupon Price Capital
Growth
of 1 Unit
Last
Update
Last Chg 1M Chg 6M Chg 12M Last Chg 1M Chg 6M Chg 12M
1 month 3.819% -41.7 bp -143.9 bp -128.6 bp 99.69 +0.04 % +0.12 % +0.10 % 1.003 06 Nov
2 months 3.657% -51.4 bp -137.2 bp -143.1 bp 99.40 +0.08 % +0.21 % +0.22 % 1.006 06 Nov
3 months 3.544% -45.2 bp -146.1 bp -158.0 bp 99.13 +0.10 % +0.34 % +0.37 % 1.008 06 Nov
6 months 3.410% -46.8 bp -146.2 bp -170.5 bp 98.34 +0.22 % +0.71 % +0.82 % 1.016 06 Nov
1 year 3.290% -29.0 bp -136.5 bp -171.0 bp 96.81 +0.28 % +1.32 % +1.65 % 1.032 06 Nov
2 years 3.185% -12.6 bp -101.0 bp -129.9 bp 93.92 +0.25 % +1.97 % +2.53 % 1.064 06 Nov
3 years 3.144% -8.4 bp -92.4 bp -117.5 bp 91.13 +0.24 % +2.70 % +3.45 % 1.097 06 Nov
4 years 3.076% -3.8 bp -75.0 bp -109.3 bp 88.59 +0.15 % +2.95 % +4.31 % 1.128 06 Nov
5 years 3.143% +5.9 bp -53.0 bp -71.6 bp 85.66 -0.29 % +2.59 % +3.52 % 1.167 06 Nov
7 years 3.188% +18.2 bp -38.8 bp -59.8 bp 80.28 -1.23 % +2.66 % +4.12 % 1.245 06 Nov
10 years 3.337% +7.2 bp -27.5 bp -45.5 bp 72.02 -0.69 % +2.69 % +4.50 % 1.388 06 Nov
20 years 3.349% +0.9 bp -23.4 bp -38.8 bp 51.75 -0.17 % +4.63 % +7.79 % 1.932 06 Nov
30 years 3.354% -2.4 bp -14.0 bp -22.9 bp 37.17 +0.70 % +4.15 % +6.87 % 2.690 06 Nov
Last Update: 7 Nov 2024, 0:15 GMT+0

Canada Yield History

This table presents the historical values of the yield curve, with data points collected at the end of each year.

By analyzing these values over time, one can observe trends and shifts in economic sentiment and monetary policy that impact investor expectations about future interest rates and economic growth.

If data are not all visible, swipe table left
Government Bonds Yield (%)
Spread (bp)
Period 1M 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y 30Y 10Y - 2Y
Nov 2024 3.819 3.544 3.410 3.290 3.185 3.144 3.143 3.188 3.337 3.354 15.2
Dec 2023 5.154 5.134 5.046 4.663 3.922 3.703 3.190 3.108 3.128 3.049 -79.4
Dec 2022 4.254 4.352 4.518 4.588 4.087 3.844 3.427 3.294 3.316 3.284 -77.1
Dec 2021 0.055 0.164 0.385 0.755 0.948 1.018 1.263 1.286 1.434 1.686 48.6
Dec 2020 0.046 0.060 0.101 0.151 0.201 0.253 0.390 0.407 0.674 1.214 47.3
Dec 2019 1.665 1.668 1.725 1.736 1.703 1.695 1.690 1.693 1.709 1.770 0.6
Dec 2018 1.630 1.640 1.775 1.875 1.862 1.871 1.890 1.918 1.965 2.181 10.3
Dec 2017 0.960 1.060 1.210 1.525 1.685 1.728 1.867 1.953 2.042 2.267 35.7
Dec 2016 0.430 0.460 0.560 0.630 0.746 0.938 1.119 1.399 1.714 2.310 96.8
Dec 2015 0.430 0.505 0.500 0.495 0.476 0.502 0.730 1.031 1.393 2.149 91.7

Canada Yield Analysis

Normally, longer-duration interest rates are higher than short-duration. So, the yield curve normally slopes upward as duration increases. For this reason, the spread (i.e. the yield difference) between a longer and a shorter bond should be positive. If not, the yield curve can be flat or inverted.

The curve convexity is measured considering some key bond durations (usually 2 years and 10 years, but also other maturities).

Internal Spread on Key Maturities:
If data are not all visible, swipe table left
2Y vs 1Y -10.5 bp Yield Curve is flat in Short-Term Maturities
5Y vs 2Y -4.2 bp Yield Curve is inverted in Mid-Term vs Short-Term Maturities
10Y vs 2Y 15.2 bp Yield Curve is flat in Long-Term vs Short-Term Maturities
If data are not all visible, swipe table left
Residual
Maturity
Yield Spread vs Spread vs
Central Bank
Rate (3.75%)
3 months 1 year 2 years 5 years 10 years
30 years 3.354% -39.6bp
10 years 3.337%
-41.3bp
5 years 3.143%
-60.7bp
2 years 3.185%
-56.5bp
1 year 3.290%
-46.0bp
3 months 3.544%
-20.6bp

Canada Credit Ratings

A credit rating is an assessment of the creditworthiness of a borrower (in general terms or with respect to a particular debt or financial obligation).

Swipe left to see all data
Rating Agency Rating Outlook Last Update Action
Standard & Poor's AAA - 29 Jul 2002 rating upgrade
Moody's Investors Service Aaa - 3 May 2002 rating upgrade
Fitch Ratings AA+ - 25 Jun 2020 rating downgrade
DBRS AAA - 16 Dec 2002 rating upgrade

Canada Interest Rates

A bank rate is the interest rate at which a nation's central bank lends money to domestic banks, often in the form of very short-term loans.

Interest Rates Value
Central Bank Rate 3.75%

Canada Credit Default Swaps

The term credit default swap (CDS) refers to a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse the lender in the case the borrower defaults.

If data are not all visible, swipe table left
Credit Default Swap CDS Value Var % 1W Var % 1M Var % 1Y Implied PD(*)
5 Years CDS 39.60 0.00 % 0.00 % +1.62 % 0.66 %
(*) Implied probability of default, calculated on the hypothesis of a 40% recovery rate.
The first official book of
Build wealth
with Lazy Portfolios and Passive Investing

Canada 10Y Bond Yield Spread

The Canada 10Y Government Bond has a 3.337% yield.

A positive spread, marked by , means that the 10Y Bond Yield is higher than the corresponding foreign bond. Instead, a negative spread is marked by a green circle .

Click on the values in "Current Spread" column, for the historical series of the spread.
Click on the "Compare" button, for a report with the full comparison between the two countries, with all the available data.
If data are not all visible, swipe table left
Canada 10Y vs Current Spread Chg 1M Chg 6M Chg 12M Compare
Countries
vs Japan 10Y 236.4 bp +2.3 bp -38.7 bp -55.6 bp
vs China 10Y 120.8 bp +10.3 bp -17.1 bp +9.4 bp
vs Germany 10Y 92.2 bp -9.6 bp -26.5 bp -21.2 bp
vs Spain 10Y 16.1 bp -9.0 bp -23.1 bp +8.1 bp
vs France 10Y 15.1 bp -9.6 bp -53.3 bp -38.9 bp
vs Italy 10Y -39.6 bp -9.9 bp -24.8 bp +29.3 bp
vs United States 10Y -109.4 bp -33.3 bp -25.6 bp -31.5 bp
vs United Kingdom 10Y -123.4 bp -29.6 bp -71.2 bp -74.5 bp
vs Australia 10Y -135.3 bp -35.0 bp -67.3 bp -54.0 bp
vs India 10Y -357.4 bp +12.4 bp -5.7 bp -8.6 bp
vs Brazil 10Y -932.9 bp -32.9 bp -150.8 bp -163.5 bp
vs Russia 10Y -1326.5 bp -28.2 bp -226.7 bp -488.2 bp

Canada Government Bonds Prices

Price Simulation: bonds with a face value of 100, with different coupon rates.

The highlighted column refers to the zero coupon bond.
Click on for a forecast of the yield.
If data are not all visible, swipe table left
Residual
Maturity
Yield Bond Price - with different Coupon Rates Fx
0% 1% 3% 5% 7% 9%
30 years 3.354% 37.17 55.90 93.37 130.83 168.30 205.77
20 years 3.349% 51.75 66.15 94.97 123.79 152.61 181.42
10 years 3.337% 72.02 80.40 97.17 113.94 130.72 147.49
7 years 3.188% 80.28 86.46 98.84 111.21 123.58 135.96
5 years 3.143% 85.66 90.23 99.35 108.47 117.59 126.71
4 years 3.076% 88.59 92.30 99.72 107.14 114.56 121.98
3 years 3.144% 91.13 93.95 99.59 105.24 110.88 116.52
2 years 3.185% 93.92 95.83 99.65 103.46 107.28 111.10
1 year 3.290% 96.81 97.78 99.72 101.66 103.59 105.53
Maturity Date 100.00 100.00 100.00 100.00 100.00 100.00
The first official book of
Build wealth
with Lazy Portfolios and Passive Investing