FX.co ★ Canada 10-Year Government Bond Yield Little Changed at 3.19%

In October, the yield on the 10-year Canadian government bond is hovering around 3.19%, nearing its lowest levels since May. Traders remain vigilant, observing ongoing economic, political, and monetary developments. The likelihood of a 25 basis points rate cut by the Bank of Canada later this month has decreased from 72% to 57%. This shift comes after unexpected labor market data revealed a 60,000 increase in employment while maintaining an unemployment rate of 7.1%. On the political stage, Prime Minister Carney recently met with US President Trump to discuss ongoing tariff negotiations. Carney assured that Canada would secure "an even better deal," while Trump committed to treating Canada fairly, although he remained non-committal about a broader trade agreement that would include Mexico. Additionally, Carney's administration is preparing to present its inaugural budget on November 4, anticipated to introduce new investment-focused stimulus initiatives. The government has signaled its intention to increase the fiscal deficit to approximately 3% of GDP.