2 Min Read
* C$ at C$1.0025 vs US$, or 99.75 U.S. cents * Spanish, Italian bond yields fall * Bond prices mostly lower By Jon Cook TORONTO, April 11 (Reuters) - The Canadian dollar firmed against its U.S. counterpart on Wednesday after falling nearly a cent the previous session as Spanish and Italian debt yields eased and equity markets steadied after good earnings from top aluminum producer Alcoa. Yields for 10-year Italian and Spanish bonds eased off Tuesday levels around 6 percent - a level economists see as unsustainable over long periods - but nervousness remained ahead of a bigger Italian debt sale on Thursday. Rising Spanish bond yields have exacerbated concerns about the fragility of peripheral euro zone economies in a market already hurt by last week's disappointing U.S. job report and soft Chinese imports. Risk sentiment was also boosted overnight by strong after-the-bell earnings from Alcoa, which posted a first-quarter profit that beat analysts' forecast for a loss. "Alcoa was the principal driver of it with better-than-expected results marking an encouraging start to earnings season in the U.S.," said Adam Cole, global head of foreign exchange strategy at Royal Bank of Canada in London. "That really is leaving all markets with a better appetite for risk and the Canadian dollar is being pulled along by that." At 8:10 a.m. (1210 GMT), the Canadian dollar at C$1.0025 versus the U.S. dollar, or 99.75 U.S. cents, up from Tuesday's North American close at C$1.0041 versus the U.S. dollar, or 99.59 U.S. cents. Commodity prices also rallied, as oil edged higher to around $120 a barrel on Wednesday, after falling to its lowest level in almost two months and copper holding near $8,000. Canadian government bond prices were mostly lower with Canada's 2-year bond down 6 Canadian cents to yield 1.221 percent, while the 10-year bond dropped 39 Canadian cents to yield 2.029 percent.