CANADA FX DEBT-C$ slips to two-week low as greenback rallies

Tue Jun 23, 2015 9:47am EDT
 
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* Canadian dollar at C$1.2372 or 80.83 U.S. cents
    * Bond prices mostly lower across the maturity curve

    TORONTO, June 23 (Reuters) - The Canadian dollar weakened to
about a two-week low against the U.S. dollar on Tuesday,
pressured by a rallying greenback and a slide in prices for
crude oil, a major Canadian export.
    The U.S. dollar climbed to its highest level in more than
1-1/2 weeks against a basket of currencies as U.S. Treasury
yields made gains across the board.
    With no Canadian economic data to drive the market this
week, the loonie's direction will continue to be dictated by
external forces.
    
    
    * At 9:28 a.m. EDT (1328 GMT), the Canadian dollar 
was trading at C$1.2372 to the greenback, or 80.83 U.S. cents,
softer than the Bank of Canada's official close of C$1.2326, or
81.13 U.S. cents, on Monday.
    * The Canadian dollar had traded between C$1.2309 and
C$1.2383 so far in the session.
    * A gauge of U.S. business investment spending plans rose in
May, offering a tentative sign of stabilization in a sector that
had weakened since last summer. Figures were nonetheless weaker
than economists had anticipated. 
    * In oil markets, optimism that a deal will be reached
between Greece and its creditors was offset by the stronger
greenback and expectations for a global crude surplus. U.S.
crude was down 1.16 percent at $59.68 a barrel, while
Brent crude lost 0.69 percent to $62.9. 
    * The Canadian dollar, which was still stronger than many of
its key currency counterparts despite its weakness against the
greenback, was expected to trade between C$1.2310 and C$1.2400
on Tuesday, according to National Bank Financial.
    * Canadian government bond prices were mostly lower across
the maturity curve, with the two-year price down 1.5
Canadian cents to yield 0.631 percent and the benchmark 10-year
 falling 45 Canadian cents to yield 1.854 percent.
    * The Canada-U.S. two-year bond spread was -5.5 basis
points, while the 10-year spread was -57.2 basis points.

 (Reporting by Solarina Ho; Editing by Peter Galloway)