June 5, 2017 / 1:53 PM / 5 months ago

CANADA FX DEBT-C$ dips as oil prices fall, Toronto home sales tumble

    * Canadian dollar at C$1.3493, or 74.11 U.S. cents
    * Bond prices lower across the yield curve

    TORONTO, June 5 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Monday as oil prices fell, while
data showed home sales tumbled in Toronto, Canada's largest
city.
    Prices of oil, one of Canada's major exports, reversed gains
to trade down on concerns that top crude exporter Saudi Arabia
and other Arab states' cutting of ties with Qatar could hamper a
global deal to reduce production.      
    U.S. crude        prices were down 1.11 percent at $47.13 a
barrel.
    New listings of Toronto homes surged in May from a year
earlier, while sales plunged and price gains slowed slightly
after rules aimed at cooling the city's red-hot housing market
took effect.             
    Investors have worried that the country's economy will
suffer if a potential housing bubble pops.             
    At 9:17 a.m. ET (1317 GMT), the Canadian dollar          was
down 0.1 percent at C$1.3493 to the greenback, or 74.11 U.S.
cents.
    The currency traded in a range of C$1.3463 to C$1.3530.
    Domestic data on Friday showed that exports climbed to a
record high in April and first-quarter labor productivity
approached a three-year high, further evidence that Canada's
economy was recovering after a long slump caused by low oil
prices.               
    Still, bearish bets on the Canadian dollar have held near a
record high, data from the Commodity Futures Trading Commission
and Reuters calculations showed on Friday. Speculators cut net
short positions on the loonie to 98,187 contracts as of May 30
from 99,109 a week earlier.             
    Canadian government bond prices were lower across a steeper
yield curve, in sympathy with U.S. Treasuries. The two-year
           dipped 2.5 Canadian cents to yield 0.702 percent, and
the 10-year             declined 17 Canadian cents to yield
1.419 percent.
    On Friday, the 10-year yield touched a nearly seven-month
low at 1.382 percent after weaker-than-expected U.S. employment
data suggested a cautious approach to interest-rate hikes from
the Federal Reserve beyond June.

 (Reporting by Fergal Smith; Editing by Lisa Von Ahn)
  
 

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