CANADA FX DEBT-C$ falls, pressured by fresh 2 1/2-month low for crude oil

Fri Nov 13, 2015 9:36am EST
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* Canadian dollar at C$1.3322, or 75.06 U.S. cents
    * Bond prices climb across the maturity curve

    By Fergal Smith
    TORONTO, Nov 13 (Reuters) - The Canadian dollar 
slipped against the U.S. dollar on Friday, though it held above
Thursday's six-week low, as a fresh 2 1/2-month low for crude
oil prices offset weaker-than-expected U.S. retail sales data
that triggered a brief loonie rally.
    The International Energy Agency added to concerns about
oversupply in the oil market, saying in a monthly report that
stockpiles are at a record 3 billion barrels. 
    U.S. retail sales rose just 0.1 percent in October, below
analyst expectations for a 0.3 percent gain. 
    At 8:57 a.m. EST (1357 GMT), the Canadian dollar 
was at C$1.3322 to the greenback, or 75.06 U.S. cents, weaker
than the Bank of Canada's official close of C$1.3282, or 75.29
U.S. cents, but above Thursday's six-week low of C$1.3342.
    The currency's strongest level of the session was C$1.3267,
while its weakest was C$1.3324.
    Bank of Canada Senior Deputy Governor Carolyn Wilkins, in an
interview with the Globe and Mail, said the central bank was
confident the housing sector would achieve a soft landing. 
    She did not address current monetary policy or the state of
the economy in her speech in Toronto on the topic "Innovation,
Central-Bank Style." 
    Speaking to the audience after, Wilkins said the current
interest rate of 0.5 percent is appropriate.
    U.S. crude prices were down 0.53 percent to $41.53,
while Brent crude added 0.70 percent to $44.37.    
    Canada is a major oil producer and weaker oil prices tend to
reduce the country's terms of trade and its economic outlook.
    Canadian government bond prices were higher across the
maturity curve, supported by weak U.S. data and the rotation out
of risk assets, including stocks and commodities.
    The two-year price rose 6 Canadian cents to yield
0.618 percent and the benchmark 10-year rose 29
Canadian cents to yield 1.668 percent.
    The Canada-U.S. two-year bond spread was -24.5 basis points,
trading 1.5 basis points wider, while the 10-year spread was
-62.6 basis points, trading 0.7 of a basis point wider, as
Canadian government bonds outperformed on the implications for
the economy of the depressed crude oil price.

 (Editing by Bernadette Baum)