The yield on the Canadian 10-year government bond hovered near 3.39%, extending its retreat from the one-year high of 3.611% reached on July 15th, as a global bond rally gained momentum following weak US data and escalating trade-war concerns that dragged US Treasury yields to three-month lows. Domestically, firm core inflation near 3% and strong hiring had kept Canadian yields elevated earlier in July, but softer June headline inflation at 1.9% and signs of labor market stabilization have since tempered expectations for further tightening. On July 30th, the Bank of Canada left its policy rate unchanged at 2.75%, signaling a wait-and-see approach, while acknowledging that weaker growth and anchored inflation could justify future rate cuts. With global recession concerns intensifying and BoC policy seen as tilted toward easing, bond markets have priced in a more dovish outlook, pressuring Canadian yields lower.