CANADA FX DEBT-C$ edges lower on weaker oil, global growth concerns

Tue Nov 10, 2015 9:25am EST
 
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* Canadian dollar at C$1.3286 or 75.27 U.S. cents
    * Bond prices higher across the maturity curve

    By Fergal Smith
    TORONTO, Nov 10 (Reuters) - The Canadian dollar was slightly
weaker against the U.S. dollar on Tuesday, as crude oil prices
slipped and weak Chinese inflation data fed concern about the
global growth outlook.
    At 8:49 a.m. ET (1349 GMT), the Canadian dollar was
trading at C$1.3286 to the greenback, or 75.27 U.S. cents,
slightly weaker than the Bank of Canada's official close of
C$1.3275, or 75.33 U.S. cents on Monday.
    The currency's strongest level of the session was C$1.3250,
while its weakest level was C$1.3290, trading in a tight range.
The bond market closes early ahead of Wednesday's national 
Remembrance Day holiday.
    U.S. stock index futures traded lower as investors worried
about the potential for slower global growth in tandem with the
start of Federal Reserve policy tightening as soon as December.
 
    China's consumer price index inflation cooled more than
anticipated in October, slowing to +1.3 year on year. It
followed disappointing trade data over the weekend. 
    U.S. crude prices gave up earlier gains and slipped
0.11 percent to $43.82 a barrel, while Brent crude eased
 0.15 percent to $47.12. 
    Medium term investors will also take note of a potential
acquisition by Canadian Pacific Railway Ltd of U.S. peer
Norfolk Southern Corp, after news of preliminary merger
talks emerged on Monday. 
    Bank of Canada Senior Deputy Governor Carolyn Wilkins will
deliver introductory remarks for David Dodge, former Bank of
Canada Governor, and of George Akerlof, Professor at Georgetown
University at an event in Toronto at 11:55 a.m. ET (1655 GMT),
although the remarks will not be published and there is no press
conference scheduled.
    The market will also be looking ahead to comments from
Federal Reserve Bank of Chicago President Charles Evans,
speaking after the close. Evans is seen by many in the market as
a dove, so any pointer to a December rate hike may carry
meaningful weight for the market. 
    Canadian government bond prices were higher across the
maturity curve, with the two-year price up 2.5
Canadian cents to yield 0.66 percent and the benchmark 10-year
 rising 1 Canadian cent to yield 1.717 percent.
    The Canada-U.S. two-year bond spread was unchanged at -21.4
basis points, while the 10-year spread was 0.5 of a basis point
narrower at -61.8 basis points.

 (Reporting by Fergal Smith Editing by W Simon)