The yield on the Canadian 10-year government bond eased to around 3.37% in August, its lowest level in a month as an unexpected 41,000-job loss increased bets that the Bank of Canada might ease their borrowing costs in upcoming meetings. Statistics Canada’s surprise employment decline and a steady 6.9% unemployment rate underscored a slowing economy. In its July 30 decision the Bank left its policy rate at 2.75% and noted that contained inflation and cooling growth could justify easing down the road. Against a backdrop of intensifying global recession concerns and a generally dovish monetary landscape, bond markets have repriced Canadian yields lower.