The Canadian government bonds traded nearly flat Thursday as investors await consumer inflation data for July. Moreover, future course in bond prices are likely to be ruled by the movements in the crude oil market.
The yield on the benchmark 10-year bond which moves inversely to its price fell 1/2 basis point to 1.059 percent and the yield on short-term 2-year note jumped ½ basis point to 0.513 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 declined more than 1 percent after API data showed a rise in US crude inventories.
The US inventories rose by 2.09 million barrels last week, the American Petroleum Institute was said to report. The International benchmark Brent futures fell 0.11 percent to $43.99 and West Texas Intermediate (WTI) dipped 0.07 percent to $41.68 by 13:00 GMT.
Lastly, Canadian stocks may struggle to continue its winning track Thursday morning amid sluggish commodities.
The S&P/TSX Composite Index fell 0.18 percent at the close of the trading session to 14,775.04 on Wednesday.
