06:52 AM EDT, 07/16/2025 (MT Newswires) -- The 10-year Canadian government bond (GoC) yield has quietly just cruised to its highest level in more than a year, said Bank of Montreal (BMO).

GoCs pushed above 3.6% on Tuesday amid a "so-so" consumer price index and a broader sell-off in Treasuries, noted the bank. It doesn't help that markets have been steadily scaling back expectations of Bank of Canada easing in the coming months.

On top of that, the fiscal spigots are opening in Canada, and elsewhere, stated BMO, putting additional pressure on longer yields. Notably, 10-year yields are now the highest since May 2024 -- that was before the BoC had even cut rates once.

Since then, overnight rates are down 225 bps, and 10s are back to "square 1," according to the bank.

For history buffs, overnight rates have settled at 100 bps above pre-pandemic levels in late 2019, while 10-year yields sit a full 200 bps

higher than in those days. Investors have gotten a steeper curve, added BMO.