Canada Yields Take Historic Dive as Investors Alter Rate Bets
- Two-year bonds see biggest 3-day yield decline since 1995
- Investors seek havens after failure of two US regional banks
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The yield on short-term Canada bonds is falling at the fastest rate in decades, as investors bet the Bank of Canada will cut rates in coming months to counter fallout from the collapse of US regional banks.
Canada’s two-year benchmark yield tumbled 42 basis points Monday to 3.532%, bringing its total decline since Wednesday to about 77 basis points. The last time the benchmark dropped that much over three trading sessions was in May 1995, according to data compiled by Bloomberg.