The 10-year Canadian government yield eased toward 3.1% after a short-lived rebound from April lows as incoming growth data undercut earlier BoC-driven support. September GDP rose 0.1% m/m and the flash Q3 estimate was 0.1% but August was revised to a 0.3% m/m contraction, the largest monthly drop since Dec 2022, all of which points to a more pronounced drag from trade frictions and higher policy rates. The Bank of Canada’s 25bp cut to 2.25% and its messaging that the move likely marks the endpoint of easing initially lifted yields, yet the accumulation of softer activity and a cooling labour market has shifted market focus back to downside growth risks, pulling the 10-year lower. Inflation is still sticky with headline CPI around 2.4% y/y and the Bank’s Trimmed measure near 3.1% which complicates the policy trade-off. On the trade front, PM Carney met with China’s Xi to restart economic engagement and reaffirm plans to double non-US exports over the next decade.