CANADA FX DEBT-Greek deal fails to sustain C$ rally
* C$ flat at C$0.9960 vs US$, or $1.0040
* Bond prices mostly weaker across the curve
* Concern over impact of Greek deal weighs on markets
By Claire Sibonney
TORONTO, Feb 21 (Reuters) - Canada's dollar was little changed against its U.S counterpart on Tuesday as enthusiasm over a long-awaited deal on a second bailout for Greece was tempered by concern over its implementation of painful austerity measures.
The Canadian dollar stood at C$0.9960 to the U.S. dollar, or $1.0040, off slightly from Friday's North American finish at C$0.9957 versus the U.S. dollar, or $1.0043. Most Canadian markets were closed on Monday for a holiday, as was Wall Street.
After 13 hours of talks, euro zone ministers finalized a 130 billion euro ($172 billion) agreement after forcing Athens to commit to unpopular budget cutbacks and private bondholders to accept deeper losses, ensuring the government can meet a debt repayment due next month.
The deal was offset by worries the austerity plan will severely weaken Greece's already shrinking economy and make it harder to repay its debts. The sharp cuts in the value of bonds held by private creditors also mean it will be hard for the country to borrow from capital markets again.
"There seem to be some reservations really about possibly the implementation near term ... and the parameters that we saw in the package overall are not that far from what the market really expected," said Adam Cole, global head of currency strategy at RBC Capital Markets in London. Continued...