CANADA FX DEBT-C$ hits fresh 11-year low on oil, Poloz awaited

Published 2015-12-08, 09:36 a/m
© Reuters.  CANADA FX DEBT-C$ hits fresh 11-year low on oil, Poloz awaited
AAL
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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$1.3590 or 73.58 U.S. cents
* Bond prices higher across the maturity curve

TORONTO, Dec 8 (Reuters) - The Canadian dollar weakened to a
fresh 11-year low against the greenback on Tuesday, tracking
additional losses for crude oil, while attention turned to a
speech by Bank of Canada Governor Stephen Poloz in Toronto.
U.S. crude prices fell below $37 per barrel for the first
time since early 2009 amid capacity storage fears as a global
glut intensifies.
Sluggish Chinese trade data fed concern about slower global
growth while planned overhaul of mining company
Anglo American (L:AAL)'s business added to negative sentiment.

New tax measures announced by the Canadian government on
Monday were accompanied by a projection increasing the
likelihood the budged deficit will be higher than forecast.

Firm Canadian housing data did little to offset pressure on
the Canadian dollar.
At 9:23 a.m. EST (1423 GMT), the Canadian dollar
was trading at C$1.3590 to the greenback, or 73.58 U.S. cents,
weaker than the Bank of Canada's official close of C$1.3513, or
74.00 U.S. cents.
The currency's strongest level of the session was C$1.3496,
while it hit its weakest level since mid-2004 at C$1.3623.
U.S. crude CLc1 prices were down 1.65 percent to $37.03 a
barrel, while Brent crude LCOc1 lost 1.40 percent to
$40.16. O/R
Canadian government bond prices were higher across the
maturity curve, with the two-year CA2YT=RR price up 6.5
Canadian cents to yield 0.566 percent and the benchmark 10-year
CA10YT=RR rising 20 Canadian cents to yield 1.498 percent,
approaching the near five-week low hit last week at 1.487
percent.
The Canada-U.S. two-year bond spread was 2.7 basis points
wider at -36.1 basis points, trading at its deepest negative
spread since June 2007 as Canada's 2-year bond outperformed.
The value of building permits surged by a
higher-than-expected 9.1 percent in October from September, the
first increase in three months, according to data from
Statistics Canada.
Seasonally adjusted housing starts were 211,916 in November,
compared with a revised 197,712 units in October, according to
Canada Mortgage and Housing Corporation.
Bank of Canada Governor Poloz will give a speech on "The
Evolution of Unconventional Monetary Policy," with a news
conference to follow. The text of the speech will be released at
12:35 p.m. EST (1735 GMT).

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