CANADA FX DEBT-C$ weakens modestly as Ukraine crisis spurs caution
* Canadian dollar at C$1.1028 or 90.68 U.S. cents * Bond prices higher across the maturity curve By Leah Schnurr TORONTO, April 21 (Reuters) - The Canadian dollar weakened modestly against the greenback on Monday as tensions in Ukraine kept investors cautious, while trading was expected to be muted as some market participants were still away for Easter holidays. An agreement reached last week to avert wider conflict in Ukraine appeared to be faltering as pro-Moscow separatist gunmen showing no sign of surrendering government buildings they have seized. Markets have seen risk aversion ebb and flow in recent months as investors have focused on the Ukraine crisis. "As we see time and again, there's a bit of that flight to safety," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets in Toronto. "We have been sideways through the morning, so I think probably trading in a fairly narrow range until we get some interesting development or some of the data" later in the week, he said. The Canadian dollar was at C$1.1028 to the greenback, or 90.68 U.S. cents, weaker than Thursday's close of C$1.1013, or 90.80 U.S. cents. Many financial markets were closed on Friday for the Good Friday holiday. Investors will get a look at some domestic economic data later in the week with February wholesale trade on Tuesday and retail sales on Wednesday. Canadian government bond prices were higher across the maturity curve, with the two-year up 1.3 Canadian cents to yield 1.067 percent, and the benchmark 10-year up 9 Canadian cents to yield 2.435 percent. (Editing by Peter Galloway)
© Thomson Reuters 2017 All rights reserved.