The Canadian government bonds traded nearly flat Wednesday as investors await the United States crude oil inventories data. The yield on the benchmark 10-year bond hovered around 1.068 percent mark and the yield on short-term 2-year note climbed nearly 1 basis point to 0.575 percent by 13:00 GMT.
The Canadian bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Bank of Canada's target. The International benchmark Brent futures rose 0.14 percent to $49.29 and West Texas Intermediate (WTI) dipped 0.30 percent to $46.44 by 13:00 GMT.
The Canadian bond yields are expected to gain on expectations of hawkish July FOMC meeting minutes. Markets will remain keen to focus on the upcoming economic data, highlighted by retail sales and consumer inflation.
Lastly, Canadian stocks are set to open a stronger session on Wednesday, as rebounding oil prices could drive gains in the energy sector.
The S&P/TSX Composite Index fell 0.50 percent at the close of the trading session to 14,703.44 on Tuesday.


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