February 17, 2017 / 3:01 PM / 7 months ago

CANADA FX DEBT-C$ edges only slightly lower as oil falls

    * Canadian dollar at C$1.3082, or 76.44 U.S. cents
    * Bond prices higher across the yield curve
    * 10-year yield hits one-week low at 1.694 percent

    TORONTO, Feb 17 (Reuters) - The Canadian dollar edged only
slightly lower against its U.S. counterpart on Friday as oil
prices fell, with losses limited  as investors awaited clarity
on U.S. President Donald Trump's policies on tax and trade.
    Prices of oil, one of Canada's major exports, were pressured
by growing global stocks. U.S. crude        prices were down
0.49 percent at $53.10 a barrel.
    The U.S. dollar        headed for its sixth week of losses
in the last eight as investors awaited substantive
market-friendly news from Trump on tax reform.             
    The imposition of a proposed border adjustment tax would
"hit Canadian exports hard," said the C.D. Howe Institute in a
research report on Tuesday.
    Canada sends 75 percent of its exports to the United States.
    At 9:47 a.m. ET (1447 GMT), the Canadian dollar          was
trading at C$1.3082 to the greenback, or 76.44 U.S. cents,
slightly weaker than Thursday's close of C$1.3080, or 76.45 U.S.
cents.
    The currency traded in a range of C$1.3061 to C$1.3099.
    On Thursday, TransCanada Corp         , Canada's No. 2
pipeline operator, filed an application with Nebraska
authorities to route its Keystone XL pipeline through the state,
after Trump cleared the way for the project last month.
            
    If constructed, Keystone would give oil producers in Canada
a quicker route to send crude to U.S. Gulf Coast refiners.    
    Canadian government bond prices rose across the yield curve
in sympathy with U.S. Treasuries as concerns over the French
election and weak data in Britain supported demand for
safe-haven assets.
    The two-year            price rose 3.5 Canadian cents to
yield 0.778 percent and the 10-year             climbed 27
Canadian cents to yield 1.712 percent.
    The 10-year yield touched its lowest intraday level since
Feb. 10 at 1.694 percent. 
    Foreign investors bought C$10.23 billion worth of Canadian
securities in December, sealing a new annual record for
purchases of bonds, stocks and money market paper, Statistics
Canada said.             

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)
  
 

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