Rising oil prices and expectations of further interest rate hikes intensified a global sell-off in government debt. Canada’s 10-year government bond yield rose to 3.73 per cent Monday, one of its highest marks since early 2025, while Japan’s 10-year yield hit three per cent for the first time since 1996 and the U.S. 10-year Treasury yield climbed as high as 4.792 per cent, the highest since January 2025. (The Logic, Bloomberg)

Talking point: It’s not just government borrowing driving the sell-off. Alphabet, Amazon, Meta, Microsoft and Oracle have issued US$220 billion of bonds so far this year to fund AI investment, more than double last year’s total, according to LSEG. Global corporate bond issuance has reached a record US$4.9 trillion, per LSEG data, adding upward pressure to yields as investors demand greater returns to absorb the new debt. That shift is already showing up in Canadian investment flows. As The Logic previously reported, Canadians sold a net $9.9 billion in U.S. government bonds through June, remaining net sellers in every month since January, while buying a record $12.82 billion of U.S. corporate bonds in June.

Sponsored Content

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts

Increasing healthcare access across Canada

By Deborah Aarts

Paid promotional content