CANADA FX DEBT-C$ strengthens with oil, U.S. jobs data boosts sentiment

Thu Jul 7, 2016 9:16am EDT
 
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* Canadian dollar at C$1.2924, or 77.38 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, July 7 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Thursday as oil prices moved
higher, while robust U.S. jobs data boosted sentiment.
    Oil prices drew support from declines in U.S. crude oil
inventories, although a glut of refined products and economic
growth concerns loom over the market. 
    At 8:59 a.m. EDT (1259 GMT), the Canadian dollar 
was trading at C$1.2924 to the greenback, or 77.38 U.S. cents,
stronger than the Bank of Canada's official close of C$1.2959,
or 77.17 U.S. cents.
    The currency's strongest level of the session was C$1.2913,
while its weakest level was C$1.2982.
    U.S. private payrolls increased more than expected in June
and fewer Americans applied for unemployment benefits last week,
suggesting a rebound in job growth after May's paltry gains, two
separate reports showed. 
    That added to services industry data from Wednesday that
showed surging new orders and hiring, suggesting the U.S.
economy regained speed in the second quarter. 
    Canada conducts most of its international trade with its
southern neighbor.
    Meanwhile, the value of Canadian building permits issued in
May unexpectedly dropped by 1.9 percent from April, Statistics
Canada data indicated on Thursday. 
    The federal statistics agency has not collected jobs data
for Fort McMurray since the Alberta city was engulfed by
wildfire in May, and has not decided when to resume the survey
there. 
    Jobs data for June is due out on Friday in both Canada and
the United States.
    The Canadian dollar was outperforming most of its key
currency counterparts, although sterling recovered from its
three-decade long lows in the wake of the British vote to leave
the European Union.
    Canadian government bond prices were lower across the
maturity curve, with the two-year price down 2.5
Canadian cents to yield 0.498 percent and the benchmark 10-year
 falling 29 Canadian cents to yield 1.003 percent.
    The Canada-U.S. two-year bond spread was -10.7 basis points,
while the 10-year spread was -/39.9 basis points.

 (Reporting by Alastair Sharp; Editing by Bernadette Baum)