The yield on the 10-year Canadian government bond fell to around 3.05% in October, its lowest level in over six months as markets reassessed the inflation outlook and the Bank of Canada policy path. September headline CPI printed 2.4% and BoC core gauges remained elevated with CPI trim at 3.1%, narrowing the central bank's leeway to ease as growth and labour market data have softened, which in turn leaves some market pricing for an eventual cut. Reports that a US Canada trade deal covering steel, aluminium and energy could be ready for signing at the Asia Pacific Economic Cooperation summit reduced a trade tail risk premium for Canada, lowering the external risk premia priced into long yields.