Canada GDP Growth and US Treasury Yields Rise Amid Oil Price Surge

Canada’s economy posted a 0.5% month‑on‑month GDP increase in April, putting second‑quarter growth on track above a 2% annualised rate and easing recession concerns. The gain came as oil prices fell on hopes for a U.S.–Iran de‑escalation, supporting lower inflation expectations and a likely hold stance from the Bank of Canada.

In the United States, the two‑year Treasury yield climbed to its highest level in 16 months after oil prices spiked to $76.98 per barrel amid renewed geopolitical tensions involving Iran. The rise has fueled speculation that the Federal Reserve may tighten policy to curb inflation, with investors watching forthcoming statements from Chair Jerome Powell and the July policy meeting.