CANADA FX DEBT-C$ jumps on global central bank talk
* C$ ends up at C$1.0238 vs US$, or 97.68 U.S. cents * Bond prices ease across the curve By Claire Sibonney TORONTO, June 14 (Reuters) - The Canadian dollar rallied against the U.S. dollar on Thursday after G20 officials told Reuters that central banks are ready to provide liquidity if needed should the outcome of Greek elections on Sunday cause tumultuous trading. News that policymakers are on standby to ensure enough cash is flowing through the financial system in the event of market mayhem soothed investors ahead of an unusual confluence of three elections this weekend, including important polls in Egypt and France. As a result, U.S. stocks - a key barometer of global risk appetite - also ended higher as Wall Street continued its roller-coaster ride ahead of the cliffhanger Greek vote. "The immediate worst-case scenario is if we get a decisive (Greek leftist party) Syriza majority following the election and a lot of the anti-bailout rhetoric becomes solidified and we find we're at a stalemate between the Greek governments and policymakers," said David Tulk, chief Canada macro strategist at TD Securities. "(Markets are) worried that if Greece is the finger stuck in the dam, if you take out that finger, the rest of the euro zone will collapse with fear translating very quickly to Spain and to Italy and to Ireland." Canada's dollar ended the North American session at C$1.0238, or 97.68 U.S. cents, stronger than Wednesday's finish at C$1.0292, or 97.16 U.S. cents. The domestic currency hit an intraday high of C$1.0230, or 97.75 U.S. cents, its strongest level since Monday. Adam Cole, global head of foreign exchange strategy at RBC Capital Markets in London, cautioned that the result of the Greek elections is too difficult for investors to call. "The outcomes (are) potentially so polar in terms of what they imply for markets. It's something that's very, very hard to position for." Canada's bond prices extended losses as risk assets advanced in response to headlines on the G20 response to euro zone fears. Canada's two-year bond was off 2 Canadian cents to yield 1.037 percent, while the benchmark 10-year bond fell 22 Canadian cents, yielding 1.791 percent.
© Thomson Reuters 2017 All rights reserved.