Canada’s 10-year government bond yield eased to around 3.92% after touching a near three-year high of 4% on September 24th, as falling oil prices halted a sharp sell-off in global bonds. Lower oil prices tempered inflation concerns, pausing the broader bond-market selloff. Expectations that diplomatic efforts involving Iran and the US could make progress toward reopening the Strait of Hormuz drove oil lower. The latest decline in the 10-year yield therefore marks a partial reversal of the week’s bond-market selloff, although yields remain substantially above levels seen earlier in September. The BoC also faces inflation concerns as energy prices remain elevated. Meanwhile, Canadian retail sales likely increased 1.3% month over month in August, rebounding from a decline in July, according to estimates. This would mark the strongest gain since January. Stronger retail sales could signal resilient domestic demand, adding further upward pressure on yields.