CANADA FX DEBT-C$ strengthens to 11-day high; pares gains as oil falls

Tue Sep 6, 2016 10:21am EDT
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* Canadian dollar at C$1.2915, or 77.43 U.S. cents
    * Bond prices slightly higher across the maturity curve

    TORONTO, Sept 6 (Reuters) - The Canadian dollar strengthened
to an 11-day high against its broadly weaker U.S. counterpart on
Tuesday, although some gains were pared as oil fell.
    The loonie has strengthened since data on Friday showed that
exports jumped by 3.4 percent in July, while a slowdown in U.S.
employment growth could rule out a rate increase from the
Federal Reserve this month.       
    Still, investors are betting the Bank of Canada will leave
its policy rate on hold at Wednesday's interest rate decision,
data from overnight index swaps shows.    
    Oil fell on receding hopes for imminent action to tackle a
global supply glut. U.S. crude prices were down 0.92
percent at $44.03 a barrel.
    At 9:52 a.m. EDT (1352 GMT), the Canadian dollar 
was trading at C$1.2915 to the greenback, or 77.43 U.S. cents,
slightly stronger than Monday's close of C$1.2930, or 77.34 U.S.
cents, according to Reuters data.
    Its official close on Friday before the Labour Day holiday
was C$1.2990, or 76.98 U.S. cents.
    The currency's weakest level on Tuesday was C$1.2933, while
it touched its strongest since Aug. 26 at C$1.2887.
    Speculators raised bullish bets on the Canadian dollar for
the second straight week, Commodity Futures Trading Commission
data showed on Friday. Net long Canadian dollar positions rose
to 22,400 contracts in the week ended Aug. 30 from 16,734
contracts in the prior week.    
    Canadian government bond prices were slightly higher across
the maturity curve, with the two-year bond up 1
Canadian cent to yield 0.588 percent and the benchmark 10-year
 rising 7 Canadian cents to yield 1.055 percent.
    Earlier in the day, the 10-year yield reached its highest
since Aug. 22 at 1.113
    Canada's August employment report is due on Friday.
Investors will be looking to see whether the labor market can
recover some of the 31,200 jobs it unexpectedly lost the month

 (Reporting by Fergal Smith; Editing by Andrea Ricci)