Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Canadian bonds started 2017 on a weaker note Tuesday as investors moved away from safe-haven buying following firmness in energy prices.
The yield on the benchmark 10-year bond, which moves inversely to its price, rose 5 basis points to 1.76 percent, the yield on long-term 30-year Treasury also jumped 5 basis points to 2.36 percent and the yield on short-term 2-year bond bounced nearly 2-1/2 basis points to 0.76 percent by 12:40 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 jumped to 18-month high as OPEC output deal kicks in. The International benchmark Brent futures rose 2.16 percent to $58.05 and West Texas Intermediate (WTI) climbed 2.25 percent to $54.93 by 12:40 GMT.
The rise in prices comes as an Opec deal to cut crude oil production by nearly 1.8 million barrels per day kicked off at the start of this month. Oman will cut production by 45,000 barrels per day to honour its commitment with Opec members, reported timesofoman.
Lastly, Canadian stocks are set to open a stronger session on Tuesday, as rallying oil prices could drive gains in the energy sector.
The S&P/TSX Composite Index fell 0.87 percent to 15,287.59 at the close of the trading session on Friday. While at 12:00 GMT, the FxWirePro's Hourly Canadian Dollar Strength Index stood neutral at +58.48 (higher than +75 represent a bullish trend).
