The 10-year Canadian government yield rose toward 3.1%, rebounding from April lows after the Bank of Canada cut the policy rate 25 basis points to 2.25% and signalled that the move likely marks the endpoint of easing rather than the start of an open-ended easing cycle. The decision arrived against a weak macro backdrop with Q2 GDP contracting 1.6% and the labour market softening despite a one-off 60,000 payroll gain that left unemployment near 7.1%. Inflation remains sticky enough to temper easing hopes with headline CPI at 2.4% year on year and the Bank’s Trimmed measure near 3.1%. Markets treated the cut as largely priced in and shifted to the BoC’s data dependent guidance, which reduced odds of further accommodation and pushed yields higher. At the same time persistent US trade and tariff uncertainty and Canadian outreach to Asia to shore up trade ties keep external risks elevated and sustain a risk off tone that further supports higher long yields.