Canada can ride out global bond rout, Finance Minister says

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsEconomyCanada can ride out global bond rout, Finance Minister saysStatistics Canada reported record flows by foreign investors into government bonds in Canada in the second quarterAuthor of the article:François-Philippe Champagne said he plans to be “constructive” yet “firm” as he meets with Scott Bessent on Tuesday. Photo by HYUNGCHEOL PARK/PostmediaFinance Minister Francois-Philippe Champagne said positive investor sentiment is helping keep Canada’s borrowing costs in check despite a global bond rout, arguing the country’s finances are strong enough to handle the volatility.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountA selloff in government debt has sent the yield on 30-year United States Treasuries surging to about 5.27 per cent, creating major headaches for Treasury Secretary Scott Bessent. The Canada long bond is trading much richer, posting a yield of 4.15 per cent as of 3:30 p.m. New York time on Tuesday.That’s a wider gap than usual. Over the past decade, the Canadian 30-year yield has been about 70 basis points below Treasuries, on average, according to data compiled by Bloomberg.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try again“The bond market is showing a lot of confidence in Canada, both in the short term and in the long term because of the measures that we’ve been taking,” he told reporters while attending the Group of 20 meetings in Asheville, North Carolina.Statistics Canada reported record flows of $80.8 billion by foreign investors into government bonds in Canada in the second quarter.“We‘re entering this period in a position of strength,” Champagne said, “We’ve reduced our expenses, we have increased revenues, but we have also made strategic choices.”But he added that Canada is “not immune to the geopolitical conflicts that are happening,” citing the ongoing wars in Iran and Ukraine that have disrupted global energy supplies and raised consumer costs.Relations between the U.S. and Canada appear to be at their worst state in years. After trade talks collapsed on Aug. 21, both sides rolled out new tariffs on each other’s goods. President Donald Trump and other U.S. officials have publicly denigrated Canada.On Monday, Bessent scoffed at the idea the U.S. was in a trade war with its northern neighbour, asking if Canada was going to “take their two submarines from the Edmonton mall and sic them on us.” That’s a reference to a visitor attraction that was removed from the West Edmonton Mall in 2005.On Tuesday, Prime Minister Mark Carney said the talks can’t resume until the U.S. stops “throwing shade” at Canada and gets serious about the issues at stake.Champagne said he plans to be “constructive” yet “firm” as he meets with Bessent on Tuesday.The benchmark 10-year Canada yield was up about one basis point in afternoon trading to 3.745 per cent. That’s the third lowest in the Group of Seven — German and Japanese debt is currently more expensive at that tenor.But it’s still around 37 basis points higher than at the start of July. The spread with U.S. 10-year notes has narrowed slightly over that period.Champagne is expected to reveal the new federal budget in the next few months. The government is running deeper deficits, partly to fund infrastructure and housing, and is aiming to draw billions of dollars of investment into Canada.In April, the finance department projected a $65.3 billion shortfall this fiscal year, representing about two per cent of gross domestic product. However, more than half of economists in a Bloomberg survey expect the deficit outlook to be deeper than that.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.