CANADA FX DEBT-C$ gains on strong China data, steady oil

Mon Apr 17, 2017 9:28am EDT
 
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    * Canadian dollar at C$1.3280, or 75.30 U.S. cents
    * Bond prices mixed across the maturity curve

    TORONTO, April 17 (Reuters) - The Canadian dollar gained in
early trade against a broadly weaker U.S. currency on Monday as
oil prices held near recent highs and investors returned from a
long weekend to strong Chinese growth data and softer U.S.
numbers.
    China's economy expanded faster than expected in the first
quarter as higher government infrastructure spending and a
property boom helped boost industrial output by the most in more
than two years.             
    Demand for industrial metals and other materials in China
can support the commodity-linked Canadian currency.
    Geopolitical tensions remained in focus, with U.S. Vice
President Mike Pence warning North Korea not to test President
Donald Trump's resolve.             
    U.S. retail sales fell for the second straight month in
March and consumer prices dropped for the first time in just
over a year, a report from the Commerce Department showed on
Friday. North American markets closed for the Good Friday
holiday.
    At 8:48 a.m. ET (1248 GMT), the Canadian dollar          was
trading at C$1.3280 to the greenback, or 75.30 U.S. cents,
stronger than Thursday's close of C$1.3328, or 75.05 U.S. cents.
    The currency's strongest level of the session was C$1.3277,
while its weakest level was C$1.3321.
    Canadian government bond prices were mixed across the
maturity curve, with the two-year            flat to yield 0.728
percent and the benchmark 10-year             down 4 Canadian
cents to yield 1.499 percent. Most other issuers saw yields
slip.
    The Canada-U.S. two-year bond spread was -47.10 basis
points, its narrowest since mid-March.
    U.S. crude        prices were down 0.17 percent to $53.09 a
barrel, while Brent crude         lost 0.09 percent to
$55.84.      Oil prices have risen steadily since late March.

 (Reporting by Alastair Sharp; Editing by Meredith Mazzilli)