I don't believe he is asking our opinion of legality. He states right in his post that it is legal to shoot a wolf in Manitoba with a deer license. He is asking about trailing a wounded wolf or coyote. Read the post before jumping on him.
I think you did the right thing. I know coyotes can be very tough to kill if you don't hit them exactly right with a rifle. They can also run a long way when wounded, and a swamp is where they will head. Tough place to look this time of year.
Brian