Canada: 10-Year Bond Yield Rises After Strong Labor Data.

The yield on Canada’s 10 year government bond rose past 3.41% as markets reassessed the outlook for Bank of Canada policy following firmer domestic labour data. January figures showed the unemployment rate falling to 6.5%, full time employment continuing to grow year on year and wage growth holding near 3.3%, reinforcing evidence that labour market slack is not widening decisively and that rapid near term rate cuts are less likely. The move was amplified by higher global rates as the US 10 year also firmed toward the low 4% area. Bank of Canada messaging cautioning against premature easing and highlighting uncertainty around structural versus cyclical weakness has further supported higher term premia, keeping upward pressure on longer dated Canadian yields.