* Canada benchmark bond yield highest since 2007

* Real estate index top decliner

* Lundin Mining down on CEO change

* TSX down 0.9%

Oct 3 (Reuters) - Canada's main stock index declined on Tuesday for the third straight session, tracking a sell-off in the broader market after U.S. Treasury yields rose to a fresh 16-year high on worries that the central bank will hold interest rates higher for longer.

At 10:27 a.m. ET (14:27 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 171.91 points, or 0.9%, at 19,005.27.

The materials sector, which includes precious and base metals miners and fertilizer companies, dipped 0.5% after an unexpected rise in U.S. job openings in August fanned fears of higher interest rates.

Gold extended losses, hitting a seven-month low, while copper prices fell to four-month lows.

Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, while the dollar climbed to a more than 10-month peak.

Canada's 10-year benchmark bond yield also touched fresh 16-year highs.

"Yields are running the show over the last bunch of trading days, and until we start to see yields slowing down from their rise, this market will continue to struggle," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

On Monday, U.S. Federal Reserve officials said monetary policy will need to stay restrictive for "some time" with indications of another hike likely this year.

Rate-sensitive real estate index lost 2.0%, while the financial sector was down 1.3%, both touching near one-year lows over growing concerns of restrictive monetary policies for a prolonged period.

The only sector with minor gains was the communications sector, which rose 0.2% in early market hours.

Meanwhile, much awaited Job Openings and Labor Turnover Survey came in hotter-than the maximum expectation in a poll of Reuters economists, further reflecting the resilience in the U.S. economy.

In corporate news, Lundin Mining shares dropped 4.7% as the company announced insider Jack Lundin would be the new chief executive officer.

(Reporting by Khushi Singh in Bengaluru; Editing by Shweta Agarwal)