The Canadian government bonds gained Thursday, following weak crude oil prices. Also, investors now await the employment report data, which is scheduled to release on Friday at 18:00 GMT.
The yield on the benchmark 10-year bond which moves inversely to its price fell 2-1/2 basis points to 1.076 percent and the yield on short-term 2-year note dipped nearly 1 basis point to 0.551 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 slipped as overproduction and large volumes of unsold stockpiles weighed on markets. The International benchmark Brent futures fell 0.70 percent to $42.80 and West Texas Intermediate (WTI) tumbled 0.15 percent to $40.77 by 13:00 GMT.
Last week, the Canada GDP declined 0.6 percent m/m in May (worst month in more than 7 years on Alberta wildfires), consensus wad for a 0.4 percent m/m fall, from up 0.1 percent m/m in April.
Lastly, Canadian stocks may struggle to continue its winning track Wednesday morning amid sluggish commodities.
The S&P/TSX Composite Index rose 0.24 percent at the close of the trading session to 14,512.05 on Wednesday.


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