CANADA FX DEBT-C$ recovers as risk stabilizes, bonds mixed
* Canadian dollar recovers to 97.47 U.S. cents
* Carney's speech makes no reference to current policy (Adds details)
By Ka Yan Ng
TORONTO, March 11 (Reuters) - The Canadian dollar made up almost all its earlier decline against the greenback on Thursday as riskier assets such as equities and crude oil pared losses.
There was little reaction in the currency after Bank of Canada Governor Mark Carney's speech to students in Ottawa contained no reference to the central bank's current policy. [ID:nN11238970]
At 2:30 p.m. (1930 GMT), the Canadian dollar was at C$1.0260 to the U.S. dollar, or 97.47 U.S. cents, down marginally from Wednesday's close at C$1.0259 to the U.S. dollar, or 97.48 U.S. cents.
The currency's early softness, which took it as low as 96.86 U.S. cents, followed data showing a smaller U.S. trade deficit, which had spurred choppy trading in the U.S. dollar.
"Commodities and equities have really stabilized. I think that's part of the reason you saw no follow-through selling (from) earlier in the day. The markets are really just on hold until the jobs numbers tomorrow," said Shane Enright, executive director, foreign exchange sales at CIBC World Markets.
Canada is expected to have added 20,000 jobs in February, according to median forecasts in a Reuters survey. [ID:nN05244644]
Bond prices were mixed on Thursday afternoon. The short-dated bonds were pressured by early domestic data that was stronger than expected and showed the recovery was heating up quicker than some had expected. [ID:nN1180093]
But the longer-term issues floated higher, alongside their U.S. counterparts, after a well-bid auction of U.S. Treasury bonds. [US/]
The two-year government bond CA2YT=RR was off 2 Canadian cents to C$99.92 to yield 1.544 percent, while the 10-year bond CA10YT=RR was up 15 Canadian cents at C$101.82 to yield 3.517 percent. (Reporting by Ka Yan Ng;editing by Rob Wilson)
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