CANADA FX DEBT-C$ weakens to new 11-year low as oil slides

Fri Dec 11, 2015 9:24am EST
 
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* Canadian dollar at C$1.3672 or 73.14 U.S. cents
    * Bond prices rise across the maturity curve

    TORONTO, Dec 11 (Reuters) - The Canadian dollar weakened to
a fresh 11-year low against the U.S. dollar on Friday as crude
oil prices slid further, while U.S. data left the door open to a
Federal Reserve rate hike next week.
    Crude oil prices hit new seven-year lows as the
International Energy Agency (IEA) warned global oversupply could
worsen in the new year. 
    U.S. crude prices were down 1.44 percent to $36.23 a
barrel, while Brent crude lost 1.59 percent to
$39.10. 
    World stocks were on the brink of a two-month low as
beaten-down oil prices contributed to negative sentiment, while
U.S. Treasuries, seen as a safe haven, rallied. 
    A solid rise in U.S. core retail sales suggested enough
momentum in the economy for the Fed to raise interest rates next
week for the first time in nearly a decade.    
    At 9:00 a.m. EST (1400 GMT), the Canadian dollar 
was trading at C$1.3672 to the greenback, or 73.14 U.S. cents,
weaker than Thursday's close of C$1.3632, or 73.36 U.S. cents.
     The currency's strongest level of the session was C$1.3625,
while at its low it hit its weakest since June 2004 at C$1.3679.
    Canadian government bond prices were higher across the
maturity curve, with the two-year price up 4 Canadian
cents to yield 0.524 percent and the benchmark 10-year
 rising 21 Canadian cents to yield 1.464 percent.
    The Canada-U.S. two-year bond spread was 0.8 of a basis
point wider at -41.1 basis points, while the 10-year spread was
1.4 basis points narrower at -73.7 basis points as Treasuries
outperformed at the long end of the curve.
    Canadian Finance Minister Bill Morneau will make an
announcement in Ottawa at 9:30 a.m. EST (1430 GMT) amid
speculation the government will tighten mortgage rules in an
effort to cool the country's housing boom.

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)