US Dollar Turns Slightly Lower Against The Loonie; 10-Year Treasury Yields Nudge Higher

01:58 PM EDT, 10/23/2026 (MT Newswires) -- The US dollar turned down against the Canadian currency on Friday afternoon as 10-year Treasury yields advanced amid rising fears about the Middle East conflict escalating. The greenback was last seen down 0.1% to CA$1.3994, the lowest level since Sept. 21. The 10-year US Treasury yields were up 3.7 basis points to 4.99% while 30-year bonds edged up 2.9 basis points to 5.316%. BMO Chief Economist Douglas Porter noted the "big pullback" in Treasury yields, describing it "as the bond market's fever seems to have broken", despite crude oil prices topping $100 a barrel. The 10-year yield, at just under 5%, was down almost 40 bps from its peak a few weeks ago. "Fueling the rally has been the mounting questions over the sustainability of the AI spending spree, but also the deepening strains in France's bond market. By week's end, French 10-year yields had moved above 5%, or above their US counterparts for the first time since 2013," Porter wrote in a note on Friday. West Texas Intermediate December futures benchmark climbed 3.3% to $102.81 per barrel. December Brent crude futures jumped 2.7% to $116.26 per barrel, the highest level since April 29. Comex gold futures for December fell 1.3% to $4,006.80 per ounce, the lowest level since mid-July, as higher oil prices fan fears of higher inflation and an interest rate hike later this year by the US Federal Reserve.