CANADA FX DEBT-C$ drifts higher as greenback slides
* Canadian dollar ends at C$1.0841 or 92.11 U.S. cents * Bond prices mixed across the maturity curve By Cameron French TORONTO, June 16 (Reuters) - The Canadian dollar ended higher versus the U.S. currency on Monday as U.S. dollar investors trimmed positions ahead of clues from the Federal Reserve on the timing of an interest rate increase. Oil futures rose as advances by Sunni insurgents in Iraq fueled concerns over a potential disruption to oil exports, but seemed to have no direct impact on the often resource-fuelled Canadian currency. "You're seeing more U.S. dollar weakness than anything else across the board, and the (Canadian dollar) is catching a little bit of a bid there in sympathy," said Brad Schruder, director of foreign exchange sales at BMO Capital Markets. The Canadian dollar ended the North American session at C$1.0841 to the U.S. dollar, or 92.24 U.S. cents, up from Friday's close of C$1.0856, or 92.11 U.S. cents. While U.S. dollar investors will be watching Fed policymakers, who will meet on Tuesday and Wednesday, for signals that U.S. monetary policy could tighten, there are few signs of any shift in Canadian monetary policy any time soon. Canadian Finance Minister Joe Oliver said on Monday that private sector economists are not too concerned about low inflation, and said he did not see any bubble in Canada's housing market. Schruder said he believes the currency is searching for a new equilibrium versus the U.S. currency, and should eventually push past C$1.08, or 92.59 U.S. cents. Canadian government bond prices were mixed across the maturity curve. The two-year was down 11 Canadian cents to yield 1.099 percent and the benchmark 10-year bond was up 20 Canadian cents to yield 2.291 percent. (Reporting by Cameron French; Editing by David Gregorio)
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