Canada’s 10-year government bond yield eased to around 3.92% after touching 4% on September 24, a near three-year high, as falling oil prices moderated inflation concerns and halted a sharp global bond selloff. Expectations that diplomatic efforts involving Iran and the United States could advance the reopening of the Strait of Hormuz pushed oil prices lower. The decline marked a partial reversal of the week’s bond-market selloff, although yields remained substantially above levels seen earlier in September. The Bank of Canada continues to face inflation concerns while energy prices remain elevated. Canadian retail sales were estimated to have increased 1.3% month over month in August after declining in July, which would be the strongest gain since January and could indicate resilient domestic demand, adding upward pressure to yields.