The yield on the 10-year Canadian government bond has been fluctuating around 3.19% in October, near its May-lows, as traders continue to monitor economic, political, and monetary developments. Market expectations for another 25bps rate cut by the Bank of Canada later this month have fallen to 57% from 72%, following stronger-than-expected labour market data showing a 60K increase in employment, while the unemployment rate unexpectedly held steady at 7.1%. On the political front, Prime Minister Carney met with US President Trump to continue tariff negotiations. Carney said Canada “will get an even better deal,” while Trump pledged to treat Canada fairly but was less committal regarding a broader continental trade deal that includes Mexico. In addition, Carney’s government is set to unveil its first budget on November 4, where new investment-focused stimulus measures are expected to be announced. The government has indicated plans to expand the fiscal deficit to around 3% of GDP.