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CANADA FX DEBT-C$ bounces after hitting 11-1/2-year trough

Published 2015-12-14, 10:15 a/m
CANADA FX DEBT-C$ bounces after hitting 11-1/2-year trough
LCO
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CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.3727 or 72.85 U.S. cents
* Bond prices lower across the maturity curve

TORONTO, Dec 14 (Reuters) - The Canadian dollar firmed
against the U.S. dollar on Monday, but only after hitting an
11-1/2-year trough as oil prices fell to fresh multiyear lows.
Oil prices neared an 11-year low on growing fears the global
oil glut would worsen in the months ahead.
U.S. crude prices CLc1 were down 1.1 percent to $35.22 a
barrel, while Brent crude LCOc1 lost 2.9 percent to $36.82.
O/R
Data from China's National Bureau of Statistics suggested
the country's economic slowdown is stabilizing after the
government's additional monetary and fiscal stimulus this year.
China is a major customer of Canada's natural resource exports.


Canadian household debt compared to income rose to a record
163.7 percent in the third quarter from a downwardly revised
162.7 percent, the second straight quarter the measure has
increased.
In other data, the Teranet-National Bank Composite House
Price Index rose 6.1 percent from a year earlier.
At 9:53 a.m. EST (1453 GMT), the Canadian dollar CAD=D4
traded at C$1.3727 to the greenback, or 72.85 U.S. cents,
stronger than Friday's close of C$1.3742, or 72.77 U.S. cents.
The currency's strongest level of the session was C$1.3677,
while it hit its weakest since June 2004 at C$1.3780.
Canadian government bond prices were lower across the
maturity curve, with the two-year CA2YT=RR price down 6
Canadian cents to yield 0.509 percent and the benchmark 10-year
CA10YT=RR falling 42 Canadian cents to yield 1.453 percent.
The Canada-U.S. two-year bond spread was 3 basis points
wider at minus 44.3 basis points, trading at its deepest
negative spread in more than eight years, as Treasuries
underperformed ahead of a likely Federal Reserve rate hike this
week.

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