07:32 AM EST, 12/12/2024 (MT Newswires) -- Canadian bond yields are up another 3bps with the 10-year rate at 3.11%on Thursday, rising alongside their United States counterparts, noted Bank of Montreal (BMO).

They spiked 5bps on Wednesday when the Bank of Canada signaled a slower pace of easing, said BMO. After chopping rates another 50bps and a cumulative 175 bps since June, the BoC believes policy is no longer substantially restrictive and can take a nimbler approach to fine-tune its rate-setting "one decision at a time."

While markets have likely seen the last of the 50bps cuts unless US President-elect Donald Trump lays on the tariffs, the bank still expects three quarter-point reductions in the first half of next year.

The Canadian dollar (CAD or loonie) has steadied around C$1.414 after catching a bid on the BoC's less dovish policy signal, pointed out BMO.

Thursday's macroeconomic data for Canada include the National Balance Sheet Accounts for Q3 at 8:30 a.m. ET. They are expected to show a further downward trend in the household debt-to-income ratio and an increase in household net worth due to rising share prices, according to the bank.

Investors will also see October building permits, which are expected to retrace 5% month-over-month lower after a double-digit spike in September, added BMO.