The Canadian bonds gained on Monday, 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 1-1/2 basis points to 1.305 percent and the yield on the short-term 2-year bonds also dipped 1 basis point to 0.601 percent by 12:40 GMT.
In the global debt market, the yield on the benchmark 10-year US Treasury note fell 1 basis point to 1.628 percent. The 10-year JGB hit a fresh all-time low of minus 0.158 percent. The German 10-year bund yield hovers above zero at 0.016 percent and the UK 10-year gilt yield slid to all time low of 1.20 pct.
Today, crude oil prices fell on a stronger dollar, after jumping beyond $51 mark on Thursday. The International benchmark Brent futures fell 0.83 percent to $51.52 and West Texas Intermediate (WTI) dipped 1.03 percent to $50.04 by 07:30 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 stock futures pointed to a lower opening for Canada’s main stock index on Monday as oil prices fell, weighed down by gloomy economic prospects in Europe and Asia and a related strengthening in the U.S. dollar. Meanwhile, June futures on the S&P TSX index were down 0.18 percent at 11:30 GMT.
The material has been provided by InstaForex Company – www.instaforex.com