The yield on the Canadian 10-year government bond fell below 3.44% as a shift toward dovish policy expectations across North America reduced compensation on long dated debt. Markets moved to price an imminent Fed cut after Chair Powell signalled growing downside risks in the labour market while cautioning about inflation expectations, and that repricing pulled down US 10-year Treasury yields which in turn transmitted to Canada. In Canada investors likewise pushed out tightening bets as retail sales are projected to have dropped 0.8% in July, the second sharpest decline in over a year, highlighting volatile consumption amid trade uncertainty. Core Trimmed-Mean inflation held at 3.0% versus consensus of 3.1% and payrolls unexpectedly lost 41,000 jobs in July against forecasts for a 13,500 gain, leaving the unemployment rate unchanged at 6.9%, strengthening the case for a more accommodative Bank of Canada.