Government of Canada 2-year benchmark bond yield, Canada
The Government of Canada 2-year benchmark bond yield in Canada was 3.27% in , up 0.31 pp from and up 0.76 pp from a year earlier. Over the latest 12 readings it moved between 2.42% and 3.27%. The next reading is for October 2026. Source: Bank of Canada, Valet BD.CDN.2YR.DQ.YLD; history from .
Key takeaways
- The Government of Canada 2-year benchmark bond yield at 3.27% in beats 80% of readings since (Bank of Canada).
- Against a ten-year average of 2.13%, the Government of Canada 2-year benchmark bond yield is above that norm by 1.14 pp (Bank of Canada).
- On the Government of Canada 2-year benchmark bond yield, Canada ranks 3rd highest of 3 countries (national publishers).
What this indicator is and why it matters
The Government of Canada 2-year benchmark bond yield is the yield on the federal government bond that the Bank of Canada designates as the two-year benchmark. The Bank publishes daily benchmark yields; the series here is the monthly average, from the Valet data service.
Two years spans about sixteen Bank of Canada rate announcements, so this yield is the market's clearest summary of where the policy rate is expected to go. It moves sharply on employment and inflation releases and on the Bank's own statements. Canadian banks price fixed-rate mortgages with short terms and many business loans off this part of the curve, which makes it a direct input into borrowing costs.
Two pitfalls. The benchmark is a specific bond that the Bank replaces from time to time as new bonds are issued, so the exact maturity drifts slightly between switches. And Canadian yields are tied closely to US Treasury yields: a large part of the movement can come from the United States rather than from Canadian news. Comparing this page with the US 2-year Treasury page shows how much the two markets expect their central banks to diverge.
Where it sits in history
The Government of Canada 2-year benchmark bond yield is at its highest since , when it stood at 3.28%. Within ten years, the Government of Canada 2-year benchmark bond yield beats 79% of readings.
| Window | Latest is higher than | Average | Highest | Lowest |
|---|---|---|---|---|
| Since January 2006 | 80% of readings | 1.96% | 4.79% | 0.17% |
| Last ten years | 79% of readings | 2.13% | 4.79% | 0.17% |
| Last five years | 58% of readings | 3.11% | 4.79% | 0.44% |
- Government of Canada 2-year benchmark bond yield 3.3%
Recent readings
Last five years
- Government of Canada 2-year benchmark bond yield 3.3%
Latest readings
| Period | Value | Change from previous |
|---|---|---|
| 3.27% | +0.31 pp | |
| 2.96% | +0.12 pp | |
| 2.84% | +0.05 pp | |
| 2.79% | -0.14 pp | |
| 2.93% | +0.10 pp | |
| 2.83% | +0.06 pp | |
| 2.77% | +0.28 pp | |
| 2.49% | -0.07 pp | |
| 2.56% | -0.01 pp | |
| 2.58% | +0.14 pp | |
| 2.44% | +0.03 pp | |
| 2.42% | -0.09 pp | |
| 2.51% | -0.19 pp |
Annual averages
By calendar-year average, the Government of Canada 2-year benchmark bond yield peaked in (4.27%) and bottomed in (0.47%). 2026 to date: 2.83%, after 2.61% in 2025.
| Year | Average | Low | High | Readings |
|---|---|---|---|---|
| 2026 (part year) | 2.83% | 2.49% | 3.27% | 9 |
| 2025 | 2.61% | 2.42% | 2.93% | 12 |
| 2024 | 3.67% | 2.99% | 4.25% | 12 |
| 2023 | 4.27% | 3.72% | 4.79% | 12 |
| 2022 | 2.90% | 1.18% | 4.01% | 12 |
| 2021 | 0.47% | 0.17% | 1.00% | 12 |
| 2020 | 0.51% | 0.24% | 1.58% | 12 |
| 2019 | 1.59% | 1.37% | 1.88% | 12 |
| 2018 | 1.99% | 1.78% | 2.29% | 12 |
| 2017 | 1.09% | 0.70% | 1.57% | 12 |
| 2016 | 0.56% | 0.39% | 0.77% | 12 |
| 2015 | 0.55% | 0.40% | 0.76% | 12 |
| 2014 | 1.05% | 1.00% | 1.14% | 12 |
| 2013 | 1.11% | 0.96% | 1.24% | 12 |
| 2012 | 1.11% | 0.98% | 1.29% | 12 |
| 2011 | 1.37% | 0.89% | 1.84% | 12 |
| 2010 | 1.54% | 1.28% | 1.90% | 12 |
| 2009 | 1.23% | 1.02% | 1.47% | 12 |
| 2008 | 2.66% | 1.38% | 3.31% | 12 |
| 2007 | 4.18% | 3.75% | 4.66% | 12 |
| 2006 | 4.02% | 3.79% | 4.27% | 12 |
Same measure in other countries
The Government of Canada 2-year benchmark bond yield in Canada is above 0 of the other 2 comparable readings. Four countries compared.
| Country | Series | Latest | Period | Change on a year earlier |
|---|---|---|---|---|
| Canada | Government of Canada 2-year benchmark bond yield | 3.27% | +0.76 pp | |
| United States | 2-year Treasury yield (constant maturity) | 4.65% | September 2026 | +1.08 pp |
| Australia | Australian Government 2-year bond yield | 4.92% | September 2026 | +1.52 pp |
Compared with the Bank of Canada policy rate
The Government of Canada 2-year benchmark bond yield stood 1.02 pp above the Bank of Canada policy rate in . A shorter-term yield above the policy rate is usually read as markets expecting the policy rate to stay up or rise. A year earlier, in , the figure was 0.01 pp. Five-year range: -1.26 pp () to 1.65 pp ().
- Government of Canada 2-year benchmark bond yield 3.3%
- Bank of Canada policy rate (target for the overnight rate) 2.2%
How is it measured?
Monthly average of the daily 2-year benchmark bond yield. Formula: average of daily BD.CDN.2YR.DQ.YLD values in the month.
Bank of Canada publishes the Government of Canada 2-year benchmark bond yield monthly in Valet BD.CDN.2YR.DQ.YLD, in percent. Code: BD.CDN.2YR.DQ.YLD. Monthly basis: each month shows the average of the daily values in that month. Method for the Government of Canada 2-year benchmark bond yield.
Questions
How high is the Government of Canada 2-year benchmark bond yield in Canada now?
3.27% in (Bank of Canada), up 0.76 pp on a year earlier.
Is the Government of Canada 2-year benchmark bond yield high by historical standards?
The Government of Canada 2-year benchmark bond yield beats 80% of readings since ; its peak was 4.79% (), its low 0.17% ().
When is the Government of Canada 2-year benchmark bond yield updated?
Monthly, in Valet BD.CDN.2YR.DQ.YLD. Next reading: October 2026.
Where can I check the Government of Canada 2-year benchmark bond yield at the source?
Bank of Canada data, code BD.CDN.2YR.DQ.YLD.