Canadian economic growth has come in well ahead of the Bank of Canada's own forecast heading into its September 2 rate decision. Second quarter GDP is tracking a 3.4 percent annualized pace, against the Bank's 2.5 percent projection, a sharp turnaround from the first quarter's contraction. The Government of Canada 5-year bond yield climbed 20 basis points in July to 3.26 percent as markets priced in reduced odds of a near-term rate cut.
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