Canadian Bonds Slump on Tracking Firm Crude, Despite Weak GDP Figure

The Canadian government bonds slumped on Friday for second straight day on following strong Crude Oil Prices. The yield on the benchmark 10-year bonds, which moves inversely to its price, moved up 0.40 pct to 1.506 pct and the yield on the 2-year bonds climbed 0.74 pct to 0.682 pct by 1305 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. Today the crude oil prices touched to 6-month high due to weak dollar and decline in United Sates output. Mainly, a weaker USD normally adds to an ascent in oil costs, since oil is priced in USD. At the point when the dollar debilitates against different other currencies, oil gets to be less expensive to purchase, pushing up demand. The International benchmark Brent futures rose 0.59 pct to $48.06 and West Texas Intermediate (WTI) climbed 0.91 pct to $46.