CANADA FX DEBT-C$ tumbles to a six-week low with weak oil

Thu Nov 12, 2015 9:20am EST
 
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* Canadian dollar at C$1.3318 or 75.09 U.S. cents
    * Bond prices mostly lower across the maturity curve

    By Fergal Smith
    TORONTO Nov 12 (Reuters) - The Canadian dollar tumbled to a
six-week low against the U.S. dollar, pressured by fresh losses
for crude oil, as concern about global growth lingered even as
European Central Bank President Mario Draghi kept the door open
to further stimulus.
    The sharp drop in China's October bank lending fed concern
about the global growth outlook. It follows weak trade,
inflation and industrial production data from China this week
that has weighed on commodity markets.
    U.S. crude prices were down 1.47 percent to $42.3,
while Brent crude lost 1.46 percent to $45.14. 
    At 8:57 a.m. ET (1357 GMT), the Canadian dollar was
trading at C$1.3318 to the greenback, or 75.09 U.S. cents, much
weaker than the C$1.3265 rate, or 75.39 U.S. cents, at 4 p.m.
(2100 GMT) on Wednesday which matched Tuesday's official close.
    The currency's strongest level of the session was C$1.3225,
while its weakest level was C$1.3328.
    The market has also been turning attention to a heavy slate
of appearances by Federal Reserve policymakers, including Chair
Janet Yellen at 09:30 am ET (1430 GMT), with the market bracing
for a rate hike as early as December. 
    Canada's new house price index rose 0.1 percent in September
after a 0.3 percent gain in August. That compares with an
expected 0.2 percent rise in a Reuters poll.
    The Teranet-National Bank House Price Index rose 0.1 percent
in October, remaining strong with a 5.6 percent gain from a year
earlier.
    Canadian government bond prices were mostly lower across the
maturity curve, with the two-year price flat to yield
0.662 percent and the benchmark 10-year falling 5
Canadian cents to yield 1.714 percent.
    The Canada-U.S. two-year bond spread was -22.1 basis points,
while the 10-year spread was -62.4 basis points, both trading
almost two basis points wider as Treasuries underperformed ahead
of Yellen's comments.
    Details of next week's Government of Canada 2-year auction
will be announced later on Thursday.
    Bank of Canada Senior Deputy Governor Carolyn Wilkins will
speak in Toronto on Friday morning, addressing the topic
"Innovation, Central-Bank Style."
    The market will also be looking forward to U.S. retail sales
data on Friday.

 (Editing by Nick Zieminski)