Canadian bonds gain following weakness in energy prices

The Canadian government bonds gained as crude oil prices declined for the sixth straight day on Friday.

The yield on the benchmark 10-year bond, which moves inversely to its price, fell 2 basis points to 1.178 percent, the yield on long-term 30-year note dipped 2 basis points to 1.830 percent and the yield on short-term 2-year bond slid 1 basis point to 0.538 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. Crude oil prices extended their downward trend amid record oil stocks build in the United States last week. The International benchmark Brent futures fell 1.49 percent to $45.66 and West Texas Intermediate (WTI) dipped 0.67 percent to $44.36 by 13:00 GMT.

Lastly, Canadian stocks may struggle to recover its winning track Wednesday morning amid sluggish commodities.

The S&P/TSX Composite Index fell 0.08 percent at the close of the trading session to 14,583.42 on Thursday.