The 10-year bond auction in Canada represents a key event where the government sells debt securities to institutional investors to fund its operations. The results, particularly the yield and the bid-to-cover ratio, serve as a benchmark for long-term interest rates in the country. A high bid-to-cover ratio indicates strong demand, which can lead to lower yields and reflect investor confidence. Conversely, a poor auction result can signal fiscal concerns or expectations of rising inflation.
The auction is conducted via a competitive bidding process where primary dealers submit bids for price and quantity. The Bank of Canada then determines the average yield based on the accepted bids.
| Date | Actual | Forecast | Surprise |
|---|---|---|---|
| Jan 27, 2025 | 2.98 | — | — |
| Nov 25, 2024 | 2.82 | — | — |
| Nov 4, 2024 | 2.99 | — | — |
| Jun 24, 2024 | 3.07 | — | — |
| Nov 27, 2023 | 3.18 | — | — |
| Sep 25, 2023 | 3.48 | — | — |
