The bond rout weighing on global markets Tuesday has left Canada relatively unscathed, Finance Minister François-Philippe Champagne said, adding that the government can borrow at one of the lowest rates among major-advanced economies.

This gives Ottawa some flexibility and strength to plot measures to help an economy dealing with geopolitical turbulence and a deteriorating trade relationship with the U.S., he said.

"The bond market is showing a lot of confidence in Canada, both in the short term and in the long term," Champagne said on the margins of a Group of 20 meeting of finance officials in North Carolina on Tuesday.

Yields on 10- and 30-year government of Canadian bonds are up slightly in trading Tuesday but remain below near-term highs.

The yield on 10-year Canadian debt sits at 3.754%, or roughly a full percentage point below the yield on a comparable Treasury bond, according to data from Tullett Prebon. Canada's 10-year yield is also below that of comparable U.K., French and Italian debt, but above Japan's 2.996% and Germany's 3.36% level.

The bond selloff has been building for weeks and reflects a number of drivers.

A jump in oil prices this week after fighting resumed in the Persian Gulf was the latest catalyst. When energy prices rise and feed through to the economy, bond investors demand higher yields to compensate for higher inflation. Heavily indebted countries--such as the U.S.--have been hit hardest.