Yield on Canadian Government Bonds Rising

About three weeks ago, I speculated that the bottom on interest rates had come and gone, and interest rates were rising.

This now seems more and more certain. Because of Abenomics, yields on Japanese government bonds have shot up and set off an ugly chain reaction. Bond prices are falling and yields are rising. Rather quickly, I might add.

Take a look at these charts of yields for selected Canadian government bonds. Pay extra attention to the longer-term bonds.

First, marketable bonds. The average yield on 1-3 year bonds:

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Now 3-to-5 year bonds:

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5-10 year:

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Here’s the average for 10+ year bonds:

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Now the benchmark bonds.

First, the 2-year:

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The 3-year:

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The 5-year:

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The 7-year:

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The 10-year:

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Long-term benchmark bonds:

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Here’s the long-term real return bond yield:

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You can draw your own conclusions from this data, I’m sure.