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CANADA FX DEBT-C$ falls with lower commodity prices, trims losses

Published 2015-11-23, 09:58 a/m
CANADA FX DEBT-C$ falls with lower commodity prices, trims losses
LCO
-
CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.3373 or 74.78 U.S. cents
* Bond prices lower across the maturity curve

TORONTO, Nov 23 (Reuters) - The Canadian dollar weakened
against a broadly stronger greenback on Monday, although it
trimmed some losses in tandem with crude oil after Saudi Arabia
reiterated its willingness to work with other oil producers to
stabilize prices.
Rising expectations that the Federal Reserve will begin
tightening as early as next month helped support the U.S. dollar
and led to further volatility in commodity markets.
U.S. crude CLc1 prices were down 1.22 percent to $41.39 a
barrel, while Brent crude LCOc1 lost 0.13 percent to
$44.60. O/R
At 9:37 a.m. EST (1437 GMT), the Canadian dollar CAD=D4
was trading at C$1.3373 to the greenback, or 74.78 U.S. cents,
weaker than Friday's official close of C$1.3345, or 74.93 U.S.
cents.
The currency's strongest level of the session was C$1.3326,
while its weakest level was C$1.3436, having moved back in sight
of the 11-year low hit in September at 1.3457.
Against the euro, the Canadian dollar was 0.1 percent lower
at C$1.4225 after business activity in the euro zone picked up
at its fastest pace since mid-2011.
A disappointing drop in September retail sales weighed on
the Canadian dollar on Friday.
Also Friday, data released by the U.S. Commodity Futures
Trading Commission revealed that speculators have increased
bearish bets on the Canadian dollar.
Canadian government bond prices were lower across the
maturity curve, with the two-year CA2YT=RR price down 2.5
Canadian cents to yield 0.63 percent and the benchmark 10-year
CA10YT=RR falling 14 Canadian cents to yield 1.64 percent.
The Canada-U.S. two-year bond spread was unchanged at -29.6
basis points, while the 10-year spread was little changed at
-63.4 basis points.
The domestic data calendar is empty today.
Bank of Canada Deputy Governor Lynn Patterson will give a
presentation on Tuesday at the University of Regina, the last
scheduled appearance by a policymaker before the central bank's
next interest rate decision due Dec. 2.
On Wednesday, the Bank of Canada will conduct a C$1.4
billion 30-year auction on behalf of the Government of Canada.

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