Forex
Canadian Yields Surge on Strong Economic Data
Canada's 10-year government bond yield rose to 3.68% after stronger-than-expected manufacturing sales data was released.
The data showed Canadian factory sales increased by 0.1% in June from May, marking a fifth consecutive monthly gain, and sales volumes rose 1.2%.
Recent economic indicators also pointed to a strong labor market and an annualized GDP growth rate of 3.4% in the second quarter, surpassing the Bank of Canada's 2.5% forecast.
The Bank of Canada has not yet responded with interest rate adjustments, but policymakers warned that inflation expectations remain elevated.