Updates prices and details throughout

By Tharuniyaa Lakshmi

May 15 (Reuters) - Canada's main stock index fell to over one-week lows on Friday, as concerns about high inflation due to the Middle East conflict set off a rout in global bonds market.

At 10:17 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 1.3% at 33,820.26 points and was on track for a weekly loss.

Global bond yields surged as signs of economic strain from the Iran war and surging oil prices sparked fears of faster interest rate hikes by global central banks and weaker economic growth.

Canada's 10-year government bond yield CA10YT=RR touched 3.67%, its highest in almost two years.

The Bank of Canada kept its key policy rate unchanged at 2.25% in April but investors are currently pricing in two 25 basis point rate hikes by the end of this year, as per LSEG data.

"Considering all factors, the TSX has been resilient this year, so a slight selloff is not unexpected as much of the recent volatility is just posturing and the headlines change every day," said Webull Canada CEO Michael Constantino.

Investors also tracked U.S. President Donald Trump’s departure from China without major breakthroughs on trade or progress in efforts to end the Iran conflict.

Heavy-weight mining stocks .GSPTTMT were down 5%, as gold and silver prices fell after surging Treasury yields and a stronger U.S. dollar dulled its appeal. GOL/

Americas Gold and Silver USA.TO, Aya Gold & Silver AYA.TO, and Wesdome Gold Mines WDO.TO fell 8.1% to 9% and were the top losers on the benchmark index.

On the flip side, energy stocks .SPTTEN rose 1% as oil prices climbed after comments from Trump and Iran's foreign minister further dented hopes of a deal to end ship attacks and seizures around the Strait of Hormuz. O/R

Among others, Financial Corp IFC.TO rose 1.8% after reports that the Canada-based Intact was exploring a potential bid for the British insurer Hiscox HSX.L.

Conifex CFF.TO fell 4.3% after the lumber and bioenergy producer's first-quarter revenue fell on reduced operating days.