By Jason Heath, CFP on September 24, 2026 Estimated reading time: 4 minutes

What do rising bond yields mean for Canadians?

By Jason Heath, CFP on September 24, 2026 Estimated reading time: 4 minutes

When bond yields rise, the effects ripple through the rest of the economy, and Canadians should take note.

Stock markets get all the attention with daily updates and constant analysis. The total value of the Canadian bond market is about 20% larger than the stock market but you rarely hear about it. Despite this, Canadian bond yields influence stock market returns, fixed mortgage rates, and have other broader financial implications. 

What is a bond’s yield?

A bond represents a loan by an investor to a government or company. It is not dissimilar to a guaranteed investment certificate (GIC).

One difference is that bonds trade on a bond market. Their prices rise and fall. This can lead to capital gains or losses for investors.

When rates rise today, the rates paid by existing bonds become less enticing. Likewise, if rates fall, and older bonds with higher interest rates become more attractive. As a result, bond prices move in the opposite direction to bond yields. 

A bond’s yield to maturity is the annualized return expected for........

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