* TSX down 0.1%

* Canada's annual inflation at 2.8% in April

(Updates prices and details throughout)

By Tharuniyaa Lakshmi

May 19 (Reuters) - Canada's main stock index edged lower

on Tuesday in choppy trade, weighed by high Treasury yields,

while investors parsed fresh data that showed domestic inflation

rose in April.

At 10:39 a.m. ET, the Toronto Stock Exchange's S&P/TSX

composite index was down 0.1% at 33,795.69 points.

Geopolitical worries eased after U.S. President Donald Trump

on Monday said there was now a "very good chance" of reaching a

deal limiting Iran's nuclear program.

On the index, the heavy-weight mining stocks was

down 3.7%, as gold prices fell 1.6%.

On the flip side, the technology sub-index led

gains, up 2.1%, with Thomson Reuters ( TMSOF ), Constellation

Software ( CNSWF ) and Descartes Systems ( DSGX ) up between 5.3%

and 9.2%.

Global bond markets evoked fears of major central banks

tightening monetary policy as the Middle East conflict sends oil

prices soaring.

Canadian government 10-year bond yields rose 1.3

basis points to 3.706%. The yield on similar U.S. government

benchmark debt rose to 4.6273%.

Canada's annual inflation rate accelerated to 2.8% in April

from 2.4% in March, driven largely by a surge in gasoline

prices, Statistics Canada data showed. Analysts polled by

Reuters had forecast the annual inflation rate at 3.1%.

"Inflation is trending higher, which is not a good trend to

be in and it also complicates the picture for the Bank of

Canada," said Michael Dehal, a senior portfolio manager at Dehal

Investment Partners at Raymond James, adding that rising bond

yields have also weighed on markets.