The Canadian bonds continue to strengthen on Tuesday, following global debt prices as investors remain uncertain about the global economic outlook and the near-term path of BoE and US interest rates. Also, weak crude oil prices drove investors towards safe-haven buying.
The yield on the benchmark 10-year Treasury note which moves inversely to its price fell nearly 2 basis points to 1.094 percent by 13:50 GMT.
Following global debt market, the benchmark 10-year US Treasury note yield is seen marching lower towards 1.50 percent mark. The benchmark German 10-year bund yields fell below zero for the first time to -0.029 percent. The 15-year JGB yield dip below zero for the first time, it is down at -0.001 percent and the benchmark 10-year JGB yield hit a fresh all-time low of -0.162 percent. The UK 10Y gilt yield hits new low of 1.15 pct, likely to test 1.10 pct mark as Brexit vote loom.
Today, crude oil prices fell as investors stay risk-averse ahead of a referendum that could end Britain's membership in the European Union. Apart from this, prices were also weighed by the prospect of bigger crude stocks in the U.S. The International benchmark Brent futures fell 1.01 percent to $49.84 and West Texas Intermediate (WTI) dipped 0.51 percent to $48.63 by 13:50 GMT.
Looking ahead, Bank of Japan Governor Haruhiko Kuroda will make a decision on stimulus on June 16 and the Federal Open Market Committee (FOMC) gathering scheduled for June 14-15. The U.K. decision on whether to remain in the European Union on June 23 is also weighing on investors’ minds.
Lastly, Canadian stocks could see additional selling pressure Tuesday morning amid growing concerns the UK will exit the EU next week. Meanwhile, June futures on the S&P TSX index were down 0.02 percent at 11:30 GMT.


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