CANADA FX DEBT-C$ strengthens against broadly weaker greenback
* Canadian dollar at C$1.2531, or 79.80 U.S. cents * Bond prices lower across the maturity curve TORONTO, May 2 (Reuters) - The Canadian dollar strengthened slightly against a broadly weaker U.S. counterpart on Monday, edging toward a nearly 10-month high reached last week. The loonie, as Canada's dollar is commonly known, has rallied 17 percent from a 12-year low in January of C$1.4689, helped by rebounding oil prices, fiscal stimulus and stronger-than-expected domestic economic activity. Growth picked up in the Canadian manufacturing sector in April for the second month in a row as businesses increased their production volumes in response to stronger demand. The greenback fell against a basket of major currencies as solid German manufacturing data helped push the euro higher. Oil prices edged back from 2016 highs on Monday as rising production in the Middle East outweighed a decline in U.S. output and a sliding dollar. U.S. crude was down 1.39 percent at $45.28 a barrel. At 9:45 a.m. EDT (1345 GMT), the Canadian dollar was trading at C$1.2531 to the greenback, or 79.80 U.S. cents, slightly stronger than Friday's close of C$1.2548, or 79.69 U.S. cents. The currency's strongest level of the session was C$1.2514, while its weakest was C$1.2559. On Friday, the loonie touched C$1.2497, its strongest since July 1. Speculators have increased bullish bets on the loonie, Commodity Futures Trading Commission data showed on Friday. Net long Canadian dollar positions rose to 11,999 contracts in the week ended on Tuesday from 7,308 in the prior week. Canadian government bond prices were lower across the maturity curve in sympathy with U.S. Treasuries. The two-year price fell 3 Canadian cents to yield 0.708 percent, its highest since June 23, while the benchmark 10-year fell 11 Canadian cents to yield 1.526 percent. Bank of Canada Governor Stephen Poloz will participate on Tuesday in a panel entitled "Monetary Policy: Out of Ammunition?" at the Milken Institute in Los Angeles. Canada's trade report for March is awaited on Wednesday, while the nation's April employment report is due on Friday. (Reporting by Fergal Smith; Editing by Lisa Von Ahn)
© Thomson Reuters 2016 All rights reserved.