CANADA FX DEBT-C$ weakens against greenback after U.S. data, firms against yen
* Canadian dollar at C$1.3948 or 71.69 U.S. cents * Bond prices lower across the maturity curve TORONTO, Feb 12 (Reuters) - The Canadian dollar weakened against it U.S. counterpart on Friday after a solid gain in U.S. core retail sales supported the greenback, but gained ground against safe-haven currencies as oil prices and stocks rebounded. Supportive of the risk-sensitive Canadian dollar, relative calm returned to world markets after a week of turmoil that triggered a dash to safe-haven assets and currencies. Oil prices jumped on prospects of a coordinated production cut, sparked by comments from the energy minister of OPEC member United Arab Emirates. U.S. crude prices were up 6.26 percent to $27.85 a barrel. At 9:08 a.m. EST (1408 GMT), the Canadian dollar was trading at C$1.3948 to the greenback, or 71.69 U.S. cents, weaker than the Bank of Canada's official close of C$1.3921, or 71.83 U.S. cents. The currency's strongest level of the session was C$1.3884, while its weakest was C$1.3954. Against the safe-haven Japanese yen, the Canadian dollar firmed to 80.82 after having touched on Thursday its lowest since Jan. 20 at 79.27 yen. U.S. consumer spending appeared to regain momentum in January as households ramped up purchases of a variety of goods, in a hopeful sign that economic growth was picking up after slowing to a crawl at the end of 2015. Canadian government bond prices were lower across the maturity curve, with the two-year price down 7 Canadian cents to yield 0.412 percent and the benchmark 10-year falling 51 Canadian cents to yield 1.077 percent. On Thursday, the 10-year yield touched a record low of 0.921 percent on the flight to safety. The curve steepened in sympathy with U.S. Treasuries. The spread between the 2-year and 10-year yields widened 2.1 basis points to 66.5 basis points as recent outperformance for longer-dated maturities was pared. (Reporting by Fergal Smith; Editing by Nick Zieminski)
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