CANADA FX DEBT-C$ helped by firmer oil and euro gains

Tue Jun 2, 2015 9:55am EDT
 
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* Canadian dollar at C$1.2455, or 80.29 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, June 2 (Reuters) - The Canadian dollar won back
some value against its U.S. counterpart on Tuesday on the back
of a rising euro currency and buoyant crude oil prices.
    "We're owing our strength to the euro rally here, but then
it could peter out at any time depending on news there, so it's
tenuous," said Don Mikolich, executive director for foreign
exchange sales at CIBC World Markets.
    The euro bounced on an above-forecast rise in euro zone
inflation and renewed efforts to solve the Greek debt crisis.
    Oil prices rose ahead of a meeting of major oil exporters.
 
    "With oil prices at and above $60, it's hard to see Canada
tanking too dramatically," Mikolich said. 
    At 9:46 a.m. EDT (1346 GMT), the Canadian dollar 
was trading at C$1.2455 to the greenback, or 80.29 U.S. cents,
stronger than the Bank of Canada's official close on Monday of
C$1.2535, or 79.78 U.S. cents.
    The currency stayed within Monday's trading range, with its
weakest level at C$1.2535.
    Canadian government bond prices were lower across the
maturity curve, with the two-year price off 2.5
Canadian cents to yield 0.582 percent and the benchmark 10-year
 falling 40 Canadian cents to yield 1.677 percent.
    The Canada-U.S. two-year bond spread was -8.3 basis points,
while the 10-year spread was -56.6 basis points.

 (Reporting by Alastair Sharp; Editing by Nick Zieminski)