The yield on the Canadian 10-year government bond climbed to about 3.4%, a near five-month high, driven by a convergence of domestic and global forces that have pushed interest-rate expectations higher. At home, stubbornly elevated core inflation (with trimmed-mean readings above 2%) and April’s unexpected retail-sales surge persuaded the Bank of Canada to maintain its policy rate at 2.75%, reinforcing the view that monetary accommodation remains off the table. Meanwhile, Ottawa’s sustained budget deficits have necessitated hefty long-term debt issuance, swelling benchmark bond supply just as traditional buyers such as pension funds seek richer yields elsewhere. Abroad, US Treasury yields have risen on strong jobs data and renewed US–China trade tensions, dragging Canadian yields higher in their wake, and persistent uncertainty over steel and aluminum tariffs, has compelled investors to insist on an added premium for holding Canadian duration.