Canadian bonds slump following recovery in energy prices, global debt market

The Canadian government bonds slumped Monday as crude oil prices recovered by a commitment from OPEC to stick to a deal to cut output.

Also, Global Treasury yields jumped after FBI Director James Coney released an official statement over the weekend saying that Hillary Clinton has been cleared of all charges, remaining stern in their conclusions expressed in July with respect to Secretary Clinton.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose 4 basis points to 1.203 percent, the yield on long-term 30-year note climbed 4 basis points to 1.854 percent and the yield on short-term 2-year bond bounced 2 basis points to 0.543 percent by 13:50 GMT.

The U.S. Treasuries were pushed lower across the curve as investors moved away from safe-haven buying after Democrat Hillary Clinton holds a four-point lead over Republican Donald Trump in the final national NBC News/Wall Street Journal poll of the 2016 presidential race.

According to latest polls from WSJ/NBC, Clinton is still ahead in the election but Trump is with all the momentum. She is ahead 44 percent to 40 percent in the poll but that's down from 48 percent to 37 percent in a poll from the same firm in mid-October. The survey has Johnson at 6 percent and Stein at 1 percent.

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 1.03 percent to $46.06 and West Texas Intermediate (WTI) jumped 1.32 percent to $44.65 by 13:50 GMT.

Lastly, Canadian stocks are set to open a stronger session on Monday, as rebounding oil prices could drive gains in the energy sector.

The S&P/TSX Composite Index fell 0.51 percent at the close of the trading session to 14,509.25 on Friday.