The yield on the Canadian 10-year government bond fell below 3.3% in September, its lowest in four months, as markets increasingly priced multiple rate cuts this year from major North American central banks. Softer headline inflation and signs of moderating growth have shifted expectations that the Bank of Canada will begin easing sooner rather than later, even as it remains vigilant against persistent price pressures. Canada’s August CPI rose 1.9% year-on-year, keeping headline inflation below the BoC’s 2% midpoint, while monthly CPI prints and cooling demand have pared the inflation risk premium embedded in long-dated yields. Core measures remain firmer but are flattening, which lowers the term premium investors demand for duration risk. At the same time, US Treasury yields have traded near five-month lows as markets reassess the Federal Reserve’s path ahead of its policy meeting, and that global decline in long yields has helped pull Canadian rates down.