CANADA FX DEBT-C$ firms broadly as oil steady

Wed Aug 26, 2015 10:30am EDT
 
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* Canadian dollar at C$1.3315 or 75.10 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, Aug 26 (Reuters) - The Canadian dollar firmed
against the greenback on Wednesday, and led its commodity
counterparts in outperforming key currencies, as investors
dipped their toes back into riskier assets.
    The move came as some calm took hold in currency markets and
equity markets tried to rally following a volatile start to the
week on worries about China's economic growth.  
    China's central bank ramped up its efforts to shore up
sentiment, pumping $21.8 billion into the money market, a day
after it cut interest rates and relaxed reserve requirements for
some large banks. 
    
    * At 10:15 a.m. EDT (1415 GMT), the Canadian dollar 
was trading at C$1.3315 to the greenback, or 75.10 U.S. cents,
stronger than the Bank of Canada's official close of C$1.3346,
or 74.93 U.S. cents.
    * The currency's strongest level of the session was
C$1.3252, while its weakest level was C$1.335.
    * There was no economic data from Canada. In the United
States, a gauge of U.S. business investment plans posted its
largest increase in just over a year in July, underscoring the
durability of the economic recovery despite a slowing global
economy. 
    * The price of oil, a key Canadian export, was stable on
Wednesday following the Chinese central bank's move, though
prices remained near 6-1/2-year lows. U.S. crude prices
were down 0.20 percent to $39.23, while Brent crude 
added 0.67 percent to $43.5. 
    * The Canadian dollar is expected to trade between C$1.3225
and C$1.3310 against the U.S. dollar on Wednesday, according to
National Bank Financial.
    * Canadian government bond prices were lower across the
maturity curve, with the two-year price down 6
Canadian cents to yield 0.382 percent and the benchmark 10-year
 falling 77 Canadian cents to yield 1.411 percent.
    * The Canada-U.S. two-year bond spread was -29.4 basis
points, while the 10-year spread was -74.8 basis points.
    

 
 


 (Reporting by Solarina Ho; Editing by Meredith Mazzilli)