Canada 10-Year Yield Retreats on Weak Jobs Data

Canada's 10-year government bond yield retreated from a more than two-year high of 3.80% to 3.77%, following the release of employment data.

The jobs numbers missed expectations, with a decline of 41,700 in August, compared to a forecasted increase of 15,000 and after a gain of 75,100 in July.

The weak labor data may support a more dovish stance from the Bank of Canada (BoC), which kept its key policy rate unchanged at 2.25% during its September meeting.

However, Governor Macklem emphasized that policymakers are prepared to raise rates if inflation remains elevated, citing increased inflation risks and uncertainty in the growth outlook due to new tariffs.