Canada’s 10-year government bond yield fell to around 3.9% after reaching a three-year high of over 4% on October 1st, despite higher yields in the US, as weaker employment data reinforced expectations that the Bank of Canada will refrain from hiking rates. Employment fell by 68,300, missing expectations for a 7,000 increase, while the unemployment rate edged up 0.1 percentage point to 6.5%. Recent data also pointed to a cooling economy. Real GDP estimates rose 0.2% in August, as gains in mining and quarrying and retail trade partly offset a decline in oil and gas extraction. GDP was essentially unchanged in July, ending a three-month growth streak. Although August’s result matched expectations, it highlighted a weaker start to the third quarter. Meanwhile, elevated oil prices continued to fuel inflation concerns and expectations of further rate hikes by central banks, keeping global bond markets under pressure. The US 10-year Treasury yield remained near multi-decade highs.