The yield on the Canadian 10-year government bond held above 3.25 percent after retreating from its four-month high of 3.4 percent on May 21st, buoyed by a resolute Bank of Canada amid persistent core inflation. Although April’s headline CPI eased toward the 2 percent target, trimmed-mean core inflation remained elevated, prompting the BoC to maintain its policy rate at 2.75 percent and defer any cuts, lifting yields on longer maturities. Meanwhile, Ottawa’s sustained budgetary requirements, met through ongoing debt issuance, have expanded supply just as domestic pension funds shift toward richer returns elsewhere. Moreover, persistent uncertainty over US steel and aluminum tariffs, coupled with mixed signals from Canada’s oil sector, has tempered growth forecasts and led buyers to insist on a risk premium for Canadian duration.