The five-year yield fell 0.6 basis points below the two-year yield. A flat or inverted yield curve could reduce the incentive for banks to lend and hinder investment in the multi-year projects that tend to boost the speed at which an economy can grow.

The price of oil, one of Canada's major exports, fell in line with further declines in global stock markets, erasing the gains made last week when major producers agreed to cut their crude output from January.