About Rendite inflationsgebundener Anleihen (CAD)
Canada's inflation-linked bond yield is the real yield (after adjusting for expected inflation) on government bonds indexed to the CPI. It is the purest market signal of the real risk-free rate in Canada.
Why FX traders watch it
Real yields are the primary driver of cad valuation in the modern FX framework. Rising real yields attract international capital to cad-denominated assets, supporting appreciation.
How to interpret the data
Positive and rising real yields are strongly cad-positive as they make Canada assets attractive on a real, inflation-adjusted basis. Deeply negative real yields (as seen during QE) are typically cad-negative.