Canada Dollar Drops as Yields Hit Lowest in Year on Jobs
Canada’s dollar declined to almost a three-month low and 10-year bond yields sank to the least in a year as the nation’s employers added fewer jobs in July than forecast, increasing concern the economy is faltering.
Canada’s dollar weakened 0.5%in the past five days, its third weekly decline. The yield on Canada’s benchmark 10-year bond fell one basis point, or 0.01 %age point, to 2.07% after touching 2.03%, the lowest since June 2013.
Bank of Canada policy makers cited weaker participation in the labour market as a sign of slack in the economy, which they said last month will take about two years to eliminate. The composition of employment shifted in July with 60,000 new part-time jobs tempering the loss of 59,700 full-time positions.
Bank of Canada Governor Stephen Poloz said he is counting on stronger exports this year and next to lead the economy back to full output.
Source: Bloomberg
