Canadian Bond Yields Dip as Weak Jobs Data Lifts Rate-Cut Hopes

The Canadian bond market saw yields dip on Friday after a weaker-than-expected jobs report. The benchmark 10-year government bond yield fell by 2.2 basis points to 3.775% as of around 9:00 a.m. ET.

The jobs data showed that Canada's economy lost 41,700 jobs in August, reversing the strong hiring seen earlier in the summer. Despite this, the unemployment rate remained at 6.4%, which was in line with expectations.

The weaker-than-expected jobs report reinforced expectations that the Bank of Canada can remain cautious on interest rates as the economy loses momentum. The move in Canadian bonds contrasted with the sharp reaction in U.S. markets, where Treasury yields climbed after a stronger-than-expected employment report in the United States.