CANADA FX DEBT-C$ dips on weaker oil; bond prices rise

Thu Nov 26, 2015 9:53am EST
 
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* Canadian dollar at C$1.3308, or 75.14 U.S. cents
    * Bond prices higher across maturity curve

    TORONTO, Nov 26 (Reuters) - The Canadian dollar edged lower
against the U.S. dollar on Thursday, tracking slippage in crude
oil prices, but trading in a narrow range in thin markets due to
the U.S. Thanksgiving Day holiday.
    Oil prices fell after six sessions of gains, as concern
faded that escalating violence in the Middle East would disrupt
supply. 
    U.S. crude prices were down 0.6 percent to $42.77 a
barrel, while Brent crude lost 1.5 percent to $45.48.
 
    Canadian non-farm payrolls rose 30,700 in September after
falling 34,100 in August, according to the Survey of Employment,
Payrolls and Hours, released by Statistics Canada, and was up
0.6 percent compared with a year earlier.
    The data is seen as less timely than the closely watched
labour force survey and had little impact on the market.
    At 9:28 a.m. EST (1428 GMT), the Canadian dollar 
was trading at C$1.3308 per greenback, or 75.14 U.S. cents,
weaker than Wednesday's official close of C$1.3296, or 75.21
U.S. cents.
    The currency's strongest level of the session was C$1.3285,
while its weakest level was at C$1.3324.
    Against the euro, the Canadian dollar dipped 0.1 percent to
C$1.4126, after having notched a fresh four-month high on
Wednesday at C$1.4067 in anticipation of further policy easing
from the European Central Bank next week.
    Canadian government bond prices were higher across the
maturity curve, with the two-year price up 1.5
Canadian cents to yield 0.623 percent and the benchmark 10-year
 rising 17 Canadian cents to yield 1.571 percent, a
three-week low.
    The curve flattened, as the spread between the 2- and
10-year yields narrowed by 1.3 basis points to +94.8 basis
points, extending recent outperformance for the 10-year bond.

 (Reporting by Fergal Smith, editing by G Crosse)