TORONTO, Dec 21 (Reuters) - The Canadian dollar was slightly
stronger against its U.S. counterpart on Monday despite renewed
weakness in oil prices, with a lack of liquidity and last week's
significant weakening leading to a tight trading range.
At 9:01 a.m. EST (1401 GMT), the Canadian dollar CAD=D4
was trading at C$1.3925 to the greenback, or 71.81 U.S. cents,
stronger than Friday's close of C$1.3945, or 71.71 U.S. cents.
The currency's strongest level of the session so far was
C$1.3914, while its weakest level was C$1.3969.
The U.S. currency slipped against a basket of currencies
after data from the Chicago Federal Reserve suggested the U.S.
economy grew at a below average pace in November.
Bank of Canada Governor Stephen Poloz told Reuters on Friday
that the currency and the price of oil move "like a pair of
train tracks" and trying to stop exchange rates from shifting
could hinder the economy's ability to absorb shocks.
Brent crude prices hit their lowest in more than 11 years on
Monday, hounded by a relentless rise in global supply that looks
set to outpace demand again next year. O/R
U.S. crude CLc1 prices were down 0.55 percent to $34.54 a
barrel while Brent crude LCOc1 lost 1.41 percent to
$36.36. O/R
Canadian government bond prices were higher across the
maturity curve, with the two-year CA2YT=RR price up 2 Canadian
cents to yield 0.491 percent and the benchmark 10-year
CA10YT=RR rising 20 Canadian cents to yield 1.377 percent.
The Canada-U.S. two-year bond spread was -45.9 basis points
while the 10-year spread was -79.8 basis points.