The Ripple · Bond yields

US yields moved. Here is how that connects to what Ottawa pays on its debt.

The US 10-year Treasury yield was 4.84% on 5 November 2026, against 4.02% at the end of November 2025. Month-end readings since 2015 have ranged from 0.55% in July 2020 to 5.29% in September 2026. Computed from the data.

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Step 1 of 3

US Treasury yield, 10-year

4.84%Nov 2026

The 2022–23 rise2015201620172018201920202021202220232024202520260%2%4%6%4.84%

A reading path through recorded links, not a forecast. Effects along a chain are never added or multiplied.

  1. Step 1 of 3

    US Treasury yields move

    The 10-year yield on US government debt.

    2016201820202022202420260%2%4%6%4.84%

    Computed from the dataThe US 10-year Treasury yield was 4.84% on 5 November 2026, against 4.02% at the end of November 2025. Month-end readings since 2015 have ranged from 0.55% in July 2020 to 5.29% in September 2026.

    Source: Board of Governors of the Federal Reserve System, Selected Interest Rates (H.15), Market yield on U.S. Treasury securities at 10-year constant maturity, quoted on investment basis. Values unmodified; Treasury yields are Treasury-published constant-maturity estimates.

  2. Step 2 of 3

    Canadian yields tend to move with them

    The 10-year yield on Government of Canada bonds.

    2016201820202022202420260%1%2%3%4%5%3.67%

    Computed from the dataThe Government of Canada 10-year bond yield was 3.67% on 5 November 2026, against 3.14% at the end of November 2025. Month-end readings since 2015 have ranged from 0.46% in July 2020 to 4.05% in October 2023.

    Established mechanism

    A central bank, agency or published study describes how this works. It does not say how large the effect is.

    Reviewed by Hamza Abdi Evidence strength: moderate. Direction: moves the same way.

    Bank of Canada staff report that Canadian long-term government bond yields tend to closely track movements in US Treasury yields. They say global forces heavily influence yields in a small open economy like Canada's, and that common shocks and similar monetary policy responses expose Canadian and US bonds to many of the same risks. A Bank of Canada explainer says interest rates in Canada respond to what happens elsewhere. This is about long-term yields; it does not say that US policy rates set Canadian policy rates.

    Limits
    A staff article, not a decision of the Governing Council; it describes co-movement and gives no size or lag. It explains the co-movement by shared exposure as well as global influence, so this is not a claim that US yields alone move Canadian yields. In October 2026 the Bank said most of the recent rise in yields in Canada, the United States and Germany reflected markets expecting higher policy rates because of persistently high energy prices, and that yields in Canada had risen by less than in the United States. Canadian policy remains set by the Bank of Canada.
    Timing
    The record gives no lag for this link.
    Source
    Bank of Canada staff article: The rise in the Canadian term premium in a global context (March 2026)This finding makes sense since global forces heavily influence yields in a small open economy like Canada’s. Indeed, Canadian long-term government bond yields tend to closely track movements in US Treasury yields. Common shocks and similar monetary policy responses in Canada and the United States mean that Canadian and US bonds are exposed to many of the same risks.
    Bank of Canada: What's behind your mortgage rate (27 May 2020)Interest rates in Canada respond to what happens elsewhere.
    Bank of Canada: Monetary Policy Report, October 2026, Current conditionsYields in Canada have also increased but by less than in the United States
    Bank of Canada: Monetary Policy Report, October 2026, In focus: Factors behind the rise in long-term sovereign bond yieldsPersistently elevated energy prices have led markets to expect higher policy interest rates. These developments account for the majority of the increase in yields in Canada, the United States and Germany.

    Also observed: correlation

    These have moved together. That alone says nothing about cause.

    Computed from published data.

    Correlation by lag in months
    Lagnone3 months6 months12 months
    r0.940.690.490.04

    Overlapping 12-month windows make observations serially dependent, so no significance test is reported. Other drivers act at the same time; correlation is not causation. Daily series are reduced to month-end values.

    Source: Bank of Canada, Benchmark bond yield, 10-year (BD.CDN.10YR.DQ.YLD). Content reused under the Bank of Canada terms (https://www.bankofcanada.ca/terms/); changes: values unchanged.

  3. Step 3 of 3

    Federal interest costs adjust as debt is refinanced

    Federal interest expense each quarter, in Statistics Canada’s government finance statistics.

    2016201820202022202420265.0B7.5B10.0B12.5B15.0B13.9B

    Computed from the dataFederal government interest expense was C$13.9 billion in the second quarter of 2026, against C$13.1 billion a year earlier. Since 2015 the quarterly figure has ranged from C$5.0 billion in the second quarter of 2020 to C$13.9 billion in the second quarter of 2026.

    Established mechanism

    A central bank, agency or published study describes how this works. It does not say how large the effect is.

    Reviewed by Hamza Abdi Evidence strength: moderate. Direction: moves the same way.

    The Department of Finance says higher interest rates raise public debt charges on marketable debt in two ways: interest costs increase as existing debt matures and is refinanced at higher rates, and rising rates increase the expected cost of future borrowing. It reports that public debt charges from April to August 2026 were 9.1% higher than a year earlier, primarily because of an increased stock of marketable bonds with higher average effective interest rates.

    Limits
    Debt charges depend on the size of the debt and its maturity profile, not on today's yield alone, so they change slowly and a rise can reflect more debt as well as higher rates. Interest on pensions and benefits and inflation adjustments on Real Return Bonds also move them. The Department speaks of interest rates generally, not of the 10-year yield shown here, and states no lag.
    Timing
    The record gives no lag for this link.
    Source
    Department of Finance Canada: Budget 2026, Annex 1: Details of economic and fiscal projections (5 November 2026)Higher interest rates directly impact estimated public debt charges on marketable debt in two ways. First, interest costs increase as existing debt matures and is refinanced at higher rates. Second, rising rates increase the expected cost of future borrowing needs.
    Department of Finance Canada: The Fiscal Monitor, August 2026 (30 October 2026)Public debt charges increased by $2.1 billion, or 9.1%, primarily driven by an increased stock of marketable bonds with higher average effective interest rates. Higher interest expense on pensions and other employee future benefits and higher Consumer Price Index adjustments on Real Return Bonds also contributed to the increase, which was partly tempered by lower short-term interest rates on treasury bills.

    Source: Adapted from Statistics Canada, Statement of government operations and balance sheet, government finance statistics, quarterly, Table 10-10-0015-01. This does not constitute an endorsement by Statistics Canada.

The whole chain

Three lines, one clock

The same months on every row. Move the cursor to read them together. Each row has its own scale, so compare timing here, not height.

November 2026

US Treasury yields move

US Treasury yield, 10-year

4.84% Nov 2026

2015201620172018201920202021202220232024202520260%3%5%8%

Canadian yields tend to move with them

Government of Canada bond yield, 10-year

3.67% Nov 2026

2015201620172018201920202021202220232024202520260%2%4%6%

Federal interest costs adjust as debt is refinanced

Federal government interest expense, quarterly

13.9B Apr 2026

2015201620172018201920202021202220232024202520265.0B10.0B15.0B
Table view
The measures in the chain. One row a quarter.
PeriodUS Treasury yield, 10-yearGovernment of Canada bond yield, 10-yearFederal government interest expense, quarterly
Nov 20264.84%3.67%no value
Oct 20264.94%3.78%no value
Jul 20264.75%3.65%no value
Apr 20264.40%3.56%13.9B
Jan 20264.26%3.42%12.2B
Oct 20254.11%3.12%12.9B
Jul 20254.37%3.45%13.1B
Apr 20254.17%3.07%13.1B
Jan 20254.58%3.07%11.9B
Oct 20244.28%3.22%12.1B
Jul 20244.09%3.18%13.5B
Apr 20244.69%3.82%13.3B
Jan 20243.99%3.35%11.9B
Oct 20234.88%4.05%11.5B
Jul 20233.97%3.49%11.3B
Apr 20233.44%2.84%10.3B
Jan 20233.52%2.92%9.0B
Oct 20224.10%3.27%8.2B
Jul 20222.67%2.61%8.3B
Apr 20222.89%2.88%8.0B
Jan 20221.79%1.78%6.2B
Oct 20211.55%1.72%6.1B
Jul 20211.24%1.20%6.3B
Apr 20211.65%1.54%6.2B
Jan 20211.11%0.84%5.5B
Oct 20200.88%0.66%5.4B
Jul 20200.55%0.46%6.1B
Apr 20200.64%0.54%5.0B
Jan 20201.51%1.27%5.9B
Oct 20191.69%1.42%5.8B
Jul 20192.02%1.49%6.4B
Apr 20192.51%1.71%7.0B
Jan 20192.63%1.88%6.0B

Timing

How the timing lines up

r = −0.5r = 0.0r = 0.5r = 1.0same month3 months later6 months later12 months laterGovernment of Canada 10-year yield
Correlation of 12-month changes in the two 10-year yields at four lags chosen in advance, 2011 to 2026. Observed association only, not a causal estimate; overlapping windows mean no significance test is reported.
Table view
Correlation at each lag. n is the number of months compared.
Measure0 months3 months6 months12 months
Government of Canada 10-year yield0.94 (n 191)0.69 (n 188)0.49 (n 185)0.04 (n 179)

Where it lands

What the record does and does not say

A chain shows recorded links, in order. It does not say how large any effect is, and it does not predict what happens next.

Also recorded here

  • From US Federal Reserve policy rateObserved correlation
  • To Euro area government bond yields (AAA)Observed correlation

See every recorded relationship

Where to go next

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