CANADA FX DEBT-C$ softens on weaker oil, disappointing China data

Fri Jul 3, 2015 9:15am EDT
 
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* Canadian dollar at C$1.2584 or 79.47 U.S. cents
    * Bond prices higher across the maturity curve

    OTTAWA, July 3 (Reuters) - The Canadian dollar weakened
against the greenback on Friday as oil prices slipped and as
data showed service sector activity slowed in China, a major
consumer of commodities.
    * Investors were also wary of taking aggressive bets heading
into Sunday's Greek referendum on the country's bailout terms
with lenders. An opinion poll showed supporters of the terms
have taken a slim lead. 
    * Talks between Greece and international lenders collapsed
last weekend, causing Greece to miss a payment to the
International Monetary Fund earlier this week. The fallout from
the referendum could determine whether the country remains in
the euro zone.
    * A combination of the uncertainty surrounding Greece,
dissapointing Canadian economic data and soft oil prices has
seen the Canadian dollar lose more than 2 percent since last
Friday.
    * At 8:59 a.m. ET (1259 GMT), the Canadian dollar 
was trading at C$1.2584 to the greenback, or 79.47 U.S. cents,
weaker than the Bank of Canada's official close of C$1.2545, or
79.71 U.S. cents.
    * The currency's strongest level of the session was
C$1.2538, while its weakest level was C$1.26. Still, the loonie
did not fall as far as the two-and-a-half-month low it hit on
Thursday.
    * U.S. crude prices were down 0.44 percent to $56.68,
while Brent crude lost 0.39 percent to $61.83. 
    * Activity in China's services sector slowed to its lowest
in five months in June, data showed, suggesting the economy
needs further policy support. 
    * Canadian government bond prices were higher across the
maturity curve, with the two-year price up 3.5
Canadian cents to yield 0.472 percent and the benchmark 10-year
 rising 35 Canadian cents to yield 1.704 percent.
    * The Canada-U.S. two-year bond spread was -16.3 basis
points, while the 10-year spread was -68.2 basis points.  

 (Reporting by Leah Schnurr; Editing by Phil Berlowitz)