The Canadian government bonds strengthened on Tuesday, following weak crude oil prices. Also, investors now await the May gross domestic product (GDP) data, which is scheduled to release on Friday at 12:30 GMT.
The yield on the benchmark 10-year bond which moves inversely to its price fell nearly 3 basis points to 1.079 percent and the yield on short-term 2-year note dipped nearly 1 basis point to 0.570 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 crude oil prices hit its lowest since May following sluggish global demand and supply glut concerns. The International benchmark Brent futures fell 0.75 percent to $44.78 and West Texas Intermediate (WTI) tumbled 1.67 percent to $42.41 by 13:00 GMT.
Lastly, Canadian stocks may struggle to get back on the winning track Tuesday morning amid sluggish commodities.
The S&P/TSX Composite Index fell 0.70 percent at the close of the trading session to 14,498.10 on Monday.
