Canadian bonds rise modestly as investors wary ahead of CPI data, lower energy prices to pressurise inflation

The Canadian government bonds rise modestly Friday as investors remained cautious ahead of the October consumer inflation data.

The yield on the benchmark 10-year bond, which moves inversely to its price, fell 1-1/2 basis points to 1.549 percent, the yield on long-term 30-year note dipped 1 basis point to 2.171 percent and the yield on short-term 2-year bond slid 1 basis point to 0.666 percent by 12:50 GMT.

The Statistics Canada will release its consumer inflation data for October on Friday at 13:30 GMT. We expect the annualised consumer price index for October to remain below the Bank of Canada target of 2 percent, from 1.8 percent in September.

Oil prices decline after weekly U.S. crude stocks rose beyond expectations and a strong dollar weighed on commodities. The International benchmark Brent futures fell to $46 and West Texas Intermediate (WTI) also dipped to $45.

Lastly, Canadian stocks may struggle to continue its winning track Wednesday morning amid sluggish commodities.

Meanwhile, the S&P/TSX Composite Index rose 0.63 percent at the close of the trading session to 14,826.09 on Wednesday. While at 12:00 GMT, the FxWirePro's Hourly Canadian Dollar Strength Index stood neutral at 42.09 (higher than 75 represents purely bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex