CANADA FX DEBT-C$ hurt by retreat in crude prices

Published 2015-09-28, 10:13 a/m
© Reuters.  CANADA FX DEBT-C$ hurt by retreat in crude prices
USD/CAD
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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$1.3335, or 74.99 U.S. cents
* Bond prices higher across the maturity curve

TORONTO, Sept 28 (Reuters) - The Canadian dollar flirted
with 11-year lows against its U.S. counterpart on Monday as
volatile crude oil prices took a negative turn, at one point
falling more than 2 percent on worries over weak global demand.
The price of crude, a major Canadian export, has plunged by
more than half in the last year, dragging the loonie along some
20 percent in that time.

* At 9:56 a.m. EDT (1356 GMT), the Canadian dollar CAD=D4
was trading at C$1.3335 to the greenback, or 74.99 U.S. cents,
softer than the Bank of Canada's official close of C$1.3316, or
75.10 U.S. cents.
* The loonie traded between C$1.3319 and C$1.3379 so far on
Monday. Last week, it briefly touched C$1.3417, or 74.53 U.S.
cents, its weakest level since June 2004.
* Potentially market-moving reports on tap this week include
Canadian gross domestic product figures for July, due out on
Wednesday, and U.S. labour data for September, on Friday.

* U.S. crude CLc1 prices were down 1.95 percent at $44.81,
while Brent crude LCOc1 lost 1.98 percent to $47.64.
* Despite the Canadian dollar's weakness against the
greenback, the currency was stronger than most of its key
counterparts. It is expected to trade between C$1.3315 and
C$1.3400 against the U.S. dollar on Monday, according to RBC
Capital Markets.
* Canadian government bond prices were higher across the
maturity curve, with the two-year CA2YT=RR price up 2 Canadian
cents to yield 0.532 percent and the benchmark 10-year
CA10YT=RR rising 43 Canadian cents to yield 1.479 percent.
* The Canada-U.S. two-year bond spread was -16.1 basis
points, while the 10-year spread was -65.3 basis points.

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