Sparks at Bank
Where research and analysis meet the economic issues that matter
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Sparks at Bank features insights and analysis from Bank of Canada economists and researchers. It takes its name from the intersection of Sparks and Bank streets in Ottawa where the Bank’s head office is located.
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March 27, 2026
The rise in the Canadian term premium in a global context
In Canada and abroad, yields on long-term government bonds have stayed high even as policy interest rates have fallen. This is due to rising term premiums―the extra compensation investors demand for holding these bonds. A key factor driving higher term premiums is global concerns about the ability of markets to absorb substantial amounts of government debt.
Disclaimer
Bank of Canada staff produce research and analysis to support the work of the Bank and to advance knowledge in the fields of economics and finance. This research is non-partisan and evidence based. While Sparks at Bank articles discuss issues relevant to the economy and central bank policy, they are produced independently from the Bank’s Governing Council. The views expressed in each article are solely those of the authors and may differ from official Bank of Canada views.