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CANADA FX DEBT-Canadian dollar falls on weakness in crude oil

Published 2015-11-27, 10:13 a/m
© Reuters.  CANADA FX DEBT-Canadian dollar falls on weakness in crude oil
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$1.3367 or 74.81 U.S. cents
* Bond prices mixed across the maturity curve

TORONTO, Nov 27 (Reuters) - The Canadian dollar weakened
against a broadly firmer U.S. dollar on Friday, pressured by a
drop in crude oil prices amid fresh volatility in Chinese
stocks, while Canadian producer prices fell more than expected.
Crude oil futures fell as disappointing Chinese data and
worries over a global energy supply glut overshadowed
geopolitical concerns.
Chinese shares sank more than 5 percent after Reuters
reported the stock regulator had widened its probe on brokerages
to include the country's fourth-biggest securities firm.

At 9:48 a.m. EST (1448 GMT), the Canadian dollar CAD=D4
was trading at C$1.3367 to the greenback, or 74.81 U.S. cents,
weaker than the Bank of Canada's official close of C$1.3294, or
75.22 U.S. cents.
The currency's strongest level of the session was C$1.3292,
while its weakest was C$1.3369, a three-day low.
Canadian producer prices fell 0.5 percent in October,
falling for a third consecutive month. A 0.1 percent drop had
been expected, according to a Reuters poll.
Canadian government bond prices were mixed across the
maturity curve, with the two-year CA2YT=RR price flat to yield
0.626 percent and the benchmark 10-year CA10YT=RR rising 7
Canadian cents to yield 1.566 percent, having hit a three-week
low at 1.547 percent ahead of December 1 coupon and maturity
payments.
The curve flattened as the spread between the 2-year and
10-year yields narrowed by 1 basis point to 93.9 basis points,
extending the recent outperformance of the 10-year bond.
Canada-U.S. spreads narrowed as Treasuries firmed following
the U.S. Thanksgiving Day holiday, with the 2-year spread at
-30.0 basis points and the 10-year spread at -65.0 basis points.
U.S. crude CLc1 prices were down 2.39 percent to $42.01 a
barrel, while Brent crude LCOc1 lost 0.48 percent to
$45.24. O/R

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