CANADA FX DEBT-C$ flat as market eyes Bank of Canada decision
* Canadian dollar at C$1.0977, or 91.10 U.S. cents * Bond prices mostly lower across the maturity curve * Bank of Canada expected to hold rates steady By Solarina Ho TORONTO, April 16 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Wednesday, as the market awaited a Bank of Canada interest-rate decision and monetary policy report later in the morning. While the central bank is expected to hold rates steady, the market will examine the bank's language in the report for any change in tone and look at its quarterly economic projections for insight into the direction of monetary policy. "It's our assumption that they'll be a little less dovish than they've been in the past. I'm afraid though that's pretty much what the markets braced for," said Mark Chandler, head of Canadian fixed income and currency strategy at Royal Bank of Canada. "The outlook, the nuts and bolts of it ... the official neutral bias, all those will be the same. We're talking about a pretty subtle shading on this, therefore we shouldn't expect a big market reaction." The Canadian dollar was trading at C$1.0977, or 91.10 U.S. cents, at 9:02 a.m. (1302 GMT), unchanged from Tuesday's close. RBC's official expected trading range for Wednesday was between C$1.0970 and C$1.1030. Further direction for the market could come from broader currency moves, with Fed Chair Janet Yellen due to speak on monetary policy and the economic recovery later on Wednesday. Canadian government bond prices were mostly lower across the maturity curve, with the two-year down 1.7 Canadian cents to yield 1.055 percent and the benchmark 10-year slipping 17 Canadian cents to yield 2.407 percent. (Reporting by Solarina Ho; Editing by Bernadette Baum)
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