Canada’s 10-year government bond yield rose to near 3.95% in September, its highest level in nearly three years, as a global bond selloff was driven by a crude oil rally and followed the release of in-line domestic CPI (consumer price index) data. Consumer prices rose 3.0% year over year in August, unchanged from July and matching market expectations. Energy goods remained the main driver of inflation, while the core gauges tracked by the BoC (Bank of Canada) showed no broad acceleration and remained near the 2% target. The oil rally continued to fuel inflation concerns and bets on a U.S. Federal Reserve rate hike on September 16th. The BoC kept its key rate at 2.25% at its latest meeting, while Governor Macklem said policymakers were prepared to raise rates if inflation remained elevated.