CORRECTED-CANADA FX DEBT-C$ little changed as global stocks sell-off slows

Published 2016-01-05, 10:20 a/m
CORRECTED-CANADA FX DEBT-C$ little changed as global stocks sell-off slows
USD/CAD
-
LCO
-
CL
-
CA2YT=RR
-
CA10YT=RR
-
(Changes to 10-year from two-year in third from last paragraph)
* Canadian dollar at C$1.3938, or 71.75 U.S. cents
* Bond prices higher across maturity curve

TORONTO, Jan 5 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Tuesday as a global
equities sell-off slowed following deep losses on Monday,
although crude oil prices turned lower.
Relief at China's intervention to steady its markets was
short-lived but U.S. stock index futures pared
earlier losses. U.S. crude CLc1 prices fell 0.84 percent to
$36.45 a barrel, while Brent crude LCOc1 lost 1.18 percent to
$36.78. O/R
At 9:19 a.m. EST (1419 GMT), the Canadian dollar CAD=D4
was trading at C$1.3938 to the greenback, or 71.75 U.S. cents,
slightly firmer than Monday's close of C$1.3941, or 71.73 U.S.
cents.
The currency's strongest level of the session was C$1.3898
and its weakest level was C$1.3955. It hit its weakest level in
more than 11 years on Dec. 18 at $1.4003.
Against the euro, the Canadian dollar firmed to C$1.4946,
its strongest level since mid-December. Euro zone core inflation
slowed for the second month in a row in December, a big headache
for the European Central Bank.
Canadian producer prices unexpectedly fell 0.2 percent in
November from October, data from Statistics Canada showed. It
was the fourth consecutive monthly decline.
Canadian government bond prices were higher across the
maturity curve, with the two-year CA2YT=RR up 0.5 Canadian
cent to yield 0.469 percent and the benchmark 10-year
CA10YT=RR rising 5.5 Canadian cents to yield 1.392 percent.
The Canada-U.S. 10-year bond spread was little changed at
-85.1 basis points after narrowing on Monday as Treasuries
outperformed on a flight to quality.
Bank of Canada Governor Stephen Poloz will speak on Thursday
in Ottawa. Market players are hoping for clarity on the policy
outlook ahead of the Canadian central bank's interest rate
announcement and monetary policy report on Jan. 20.
Canada is scheduled to release trade data for November on
Wednesday and its December employment report on Friday.

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