Updates at market close

Jan 7 (Reuters) - Canada's main stock index ended lower for a second straight day on Tuesday, including a steep decline for technology shares, as a jump in U.S. government borrowing costs hurt investor sentiment.

The S&P/TSX composite index .GSPTSE ended down 69.90 points, or 0.3%, at 24,929.89, adding to Monday's decline.

"The yields on the U.S. Treasuries are running the show," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth. "We saw some hotter data out of the U.S. this morning and that set the tone for markets."

The U.S. 10-year yield, a benchmark for borrowing costs globally, rose to its highest level since May as U.S. economic data raised concerns that an inflation rebound could slow the pace of Federal Reserve interest rate cuts.

Wall Street also posted declines.

The Toronto market's technology sector fell 3.1%, including a decline of 6.3% for the shares of e-commerce company Shopify Inc. SHOP.TO.

Higher long-term rates reduce the value to investors of the cash flows that technology and other high-growth companies are expected to produce.

Real estate fell 0.7% and heavily weighted financials were down 0.3%.

Helping to contain the TSX's losses, energy added 1.7% as the price of oil CLc1 settled 0.9% higher at $74.25 a barrel.

Prime Minister Justin Trudeau's government will continue to collect a modified capital gains tax, the finance ministry said, after the proposed measure was thrown into limbo when Trudeau suspended Parliament.

(Reporting by Fergal Smith in Toronto and Ragini Mathur in Bengaluru; Editing by Sahal Muhammed and Sandra Maler)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))