CANADA FX DEBT-C$ strengthens more than a cent as oil prices jump

Mon Feb 2, 2015 10:24am EST
 
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* Canadian dollar at C$x or x U.S. cents
    * Bond prices x across the maturity curve

    TORONTO, Feb 2 (Reuters) - The Canadian dollar was stronger
against its U.S. counterpart on Monday, driven primarily by a
jump in crude prices as investors piled in after data showed a
falling U.S. rig count, which could signal lower production down
the line.
    Canada is a major oil producer and the currency has tracked
the dramatic slide in crude prices over the last half year.
Industry data showed a record weekly drop in the number of U.S.
oil rigs being used, with the count down 24 percent from its
October peak. 
    U.S. crude prices at one point touched above $50 a barrel on
Monday. 
    "The bounce-back in oil - you're almost at $50 on WTI - is
helping Canada, along with most of the other commodity
currencies this morning," said Mark Chandler, head of Canadian
fixed income and currency strategy at RBC Capital Markets.
    At 10:06 a.m. (1506 GMT), the Canadian dollar was
at C$1.2592 to the greenback, or 79.42 U.S. cents, significantly
stronger than Friday's close of C$1.2711, or 78.67 U.S. cents.
    Canadian trade data for December and January employment
figures on both sides of the border later this week will be key
areas of focus for market participants seeking further
direction.
    Canadian government bond prices were mixed across the
maturity curve, with yields near record lows. The two-year
 was up 1 Canadian cent, yielding 0.385 percent, and
the benchmark 10-year was down 3 Canadian cents to
yield 1.253 percent.

 (Reporting by Solarina Ho; Editing by Jonathan Oatis)