Canada 2-Year Government Bond Yield

## What this measures

The market yield on the Government of Canada 2-year benchmark bond.

## Why it matters

Two-year yields move with what markets expect the Bank of Canada to do over the next two years, so they lead policy-rate changes.

## How to read it

A 2-year yield below the policy rate means markets expect cuts; above it, hikes.

## What it does not say

It is one benchmark bond, quoted at the close; it says nothing about credit spreads or provincial borrowing costs.

## Source

Bank of Canada, Valet API, series BD.CDN.2YR.DQ.YLD ("Benchmark bond yield, 2-year"). Palanor pulls it from the Bank's Valet service every weekday. Source: Bank of Canada. Content obtained from the Bank of Canada website; changes are noted where Palanor computes from it.