Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Canadian bonds fall following jump in energy prices

The Canadian bonds fell Friday, following a jump in global energy prices after the International Energy Agency lifted its demand forecast and said OPEC is sticking to its pledge to cut production. Canada is the world’s 7th largest oil producing country.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose nearly 1 basis point to 1.68 percent, the yield on long-term 30-year Treasury also moved 1/2 basis point higher to 2.35 percent and the yield on short-term 2-year bond also rose 1/2 basis point up at 0.75 percent by 11:50 GMT.

The International benchmark Brent futures jumped 1.00 percent to USD56.18 and West Texas Intermediate (WTI) also moved higher 0.87 percent to USD53.46 by 11:50 GMT.

The Paris-based oil agency upgraded its forecast for 2017 demand growth to 1.4 million barrels a day, from 1.3 million barrels projected in its January report.

It also said that members of the Organization of the Petroleum Exporting Countries have reached a record compliance of 90 percent with their agreed output cuts, with production from the cartel down by 1 million barrels a day to 32.06 million barrels in January.

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

Meanwhile, the S&P/TSX Composite Index rose 0.41 percent to 15,617.30 at the close of the trading session on Thursday, while at 11:00GMT, the FxWirePro's Hourly CAD Strength Index remained neutral at -9.14 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.