06:59 AM EDT, 07/16/2026 (MT Newswires) -- The market reaction was muted following the Bank of Canada's decision to keep interest rates unchanged on Wednesday, as widely expected by consensus, according to Deutsche Bank Research in a note.

Although the central bank struck a somewhat more positive tone in its statement, highlighting that the economy was "showing signs of improvement," the message had little impact on the bond markets, wrote the bank in its "Early Morning Reid - Macro Strategy" note of Thursday.

The 10-year Canadian government bond yield dropped 4.3 basis points, matching the decline in 10-year US Treasury yields, added Deutsche Bank.