Canada's Bond Market Eases Amid Softening US Inflation

The Canadian bond market showed signs of easing on Thursday as the country's yields fell. This move was in line with the US Treasury market, which saw a drop in yields following the release of US inflation data. The 10-year yield for Canada traded 7.1 basis points lower at 3.621%, down from its two-year high of 3.755% on Tuesday.

The easing of inflationary pressures in the US was seen as a positive sign, with the year-over-year rate dropping to 4.7% from 5.5% in June. This led to expectations that the Federal Reserve may keep interest rates unchanged next month.

Colin Cieszynski, chief market strategist at SIA Wealth Management, noted that the report indicated inflationary pressures remained elevated but eased during the month.