CANADA FX DEBT-C$ firms, trims some gains on lower oil, wholesale trade data

Published 2015-11-19, 09:11 a/m
CANADA FX DEBT-C$ firms, trims some gains on lower oil, wholesale trade data
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$1.3292, or 75.23 U.S. cents
* Bond prices rise slightly across the maturity curve

TORONTO, Nov 19 (Reuters) - The Canadian dollar firmed
against a broadly weaker U.S. dollar, but trimmed some gains as
crude oil prices fell after earlier advancing and Canadian
wholesale trade dipped unexpectedly in September.
Supportive of global asset markets but weighing on the U.S.
dollar, the Federal Reserve has signaled a likely rate increase
next month, but also that it would proceed gradually on further
hikes depending on the economy's performance.
Canadian wholesale trade fell by 0.1 percent in September
from August, led by the motor vehicle and building supplies
sectors, data from Statistics Canada showed on Thursday. That
compares with an expected 0.3 percent gain in a Reuters poll.
At 8:38 a.m. EST (1338 GMT), the Canadian dollar
was trading at C$1.3292 to the greenback, or 75.23 U.S. cents,
stronger than the Bank of Canada's official close on Wednesday
of C$1.3318, or 75.09 U.S. cents.
The currency's strongest level of the session was C$1.3247,
while its weakest was C$1.3314.
U.S. crude CLc1 prices were down 1.64 percent to $40.08,
while Brent crude LCOc1 lost 0.75 percent to $43.81. O/R
Canadian government bond prices were slightly higher across
the maturity curve, with the two-year CA2YT=RR price up 0.5
Canadian cent to yield 0.637 percent and the benchmark 10-year
CA10YT=RR rising 7 Canadian cents to yield 1.642 percent.
The curve flattened in sympathy with U.S. Treasuries, as the
spread between the 2-year and 10-year yields narrowed by 0.5 of
a basis point to 100.8 basis points, indicating outperformance
for longer-dated maturities.
The Canada-U.S. two-year bond spread was 2 basis points
wider at -25.8 basis points as Treasuries underperformed at the
front of the curve, while the 10-year spread was 0.7 of a basis
point narrower at -61.2 basis points.
The Bank of Canada will release the autumn issue of the Bank
of Canada Review at 10:30 a.m. EST (1530 GMT), featuring
articles related to the Canadian economy and to central banking.
Details of next week's Government of Canada 30-year auction
will be announced today.
The market will also be bracing for October CPI and
September retail sales data, due to be released on Friday.

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