According to ChainCatcher, Canadian benchmark bond yields are rising in tandem with U.S. bond trends, as financial markets bet that Trump will reapply inflationary pressure.
Rising yields may complicate the Bank of Canada's efforts to revive the economy and prevent inflation from slowing too quickly. The Bank of Canada has been the most aggressive implementer of easing policies among the G7 this year.
Foreign exchange company Corpay's Chief Market Strategist Karl Schamotta stated that as import price risks emerge, the Bank of Canada may slow its easing pace. Measures by the Trump administration that could exacerbate inflation include imposing a 10% tariff on all imported goods and significant tax cuts.