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CANADA FX DEBT-C$ weaker against firm greenback as oil weighs

Published 2015-11-05, 09:26 a/m
CANADA FX DEBT-C$ weaker against firm greenback as oil weighs
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$1.3179 or 75.88 U.S. cents
* Bond prices mixed across the maturity curve

Nov 5 (Reuters) - The Canadian dollar weakened on Thursday
against a broadly firmer U.S. dollar, contending with sustained
pressure on crude oil and rising risk of a Federal Reserve
interest rate hike as early as December.
At 8:52 a.m. ET (1352 GMT), the Canadian dollar was
trading at C$1.3179 to the greenback, or 75.88 U.S. cents,
weaker than Wednesday's close of C$1.3157, or 76.01 U.S. cents.
Crude oil slipped further after selling off on Wednesday,
with U.S. crude CLc1 prices down 1 percent to $45.88 a barrel
and Brent crude LCOc1 losing 0.5 percent to $48.32.
Canadian government bond prices were mostly higher, although
the longest dated issues slipped. The two-year CA2YT=RR price
rose 2.5 Canadian cents to yield 0.612 percent and the benchmark
10-year CA10YT=RR added 9 Canadian cents to yield 1.624
percent, but the 30-year CA10YT=RR fell 5 cents to yield 2.368
percent.
The Canada-U.S. two-year bond spread was 0.5 of a basis
point less negative at -21.3 basis points, while the 10-year
spread was 0.7 of a basis point more negative at -60.3 basis
points.
The text of the Trans-Pacific Partnership (TPP) trade pact
has been released. Canada is one of the partners in the pact
which aims to free up commerce in 40 percent of the world's
economy.
In economic data, the Ivey PMI is set for release at 10:00
a.m. ET (1500 GMT). The seasonally adjusted index is expected to
edge higher to 54.0 in October from 53.7 in September, according
to a Reuters poll.
The market will also be turning attention to U.S. and
Canadian employment data on Friday. A Reuters poll estimates
that Canadian employment will rise 10,000 in October after
adding 12,100 jobs in September.

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