US Dollar Weakens Against The Loonie as 10-Year Yields Edge Down

01:49 PM EDT, 10/20/2026 (MT Newswires) -- The US dollar was lower against its Canadian counterpart for the third-straight session on Tuesday afternoon, as 10-year Treasury yields edged down. The greenback was last seen down 0.3% at CA$1.4091. The 10-year US Treasury yields was down 1.9 basis points to 5.117% while 30-year bonds fell 4.4 basis points to 5.429%. TD Economics, in a note published today, said the upward shift on US bonds in the past few months is "almost exclusively" due to investors placing higher bets on interest rate hikes. "In July, there was an expectation for the policy rate to settle at 4.00% by the end of 2027. That now stands at 4.50%," write economists Beata Caranci and Andrew Hencic. Two interconnecting forces within the US are now rippling to the rest of the world: energy prices and central bank communication. While fiscal sustainability, a third factor, has had limited impact on US domestic yields, this is no longer a remote risk, the authors add. Comex gold futures for December fell 0.4% to $4,142.40 per ounce. Oil prices eased Monday afternoon. West Texas Intermediate November futures benchmark fell 0.6% to a four-week high of $103.00 per barrel. December Brent crude futures edged down 0.8% to $108.66 per barrel.