CANADA FX DEBT-C$ flat as markets digest Greece bailout

Tue Apr 13, 2010 8:20am EDT
 
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 * C$ slightly up at 99.71 U.S. cents
 * Bonds prices flat to higher across curve
 By Claire Sibonney
 TORONTO, April 13 (Reuters) - The Canadian dollar was
little changed against its U.S. counterpart on Tuesday a day
after stalking parity as investors continued to assess news of
a massive European financial rescue package for Greece and
awaited key U.S. economic data later in the week.
 Earlier, Greece easily sold its allocation of 6-month and
one-year T-Bills, raising 1.56 billion euros with the inclusion
of non-competitive bids, but at a yield which was costly for
the debt-laden country. For details see [ID:nLDE63C0FQ]
 "There wasn't any real development overnight to push the
Canadian dollar in either direction. Most of that perhaps was
due to the fact that investors were digesting the news out of
Greece and out of Europe more generally," said Millan Mulraine,
economics strategist at TD Securities, adding that the fairly
positive auction outcome was a foregone conclusion.
 "After all, that was the whole point of having the rescue
package, so that Greek bonds would be more palatable to global
investors."
 On Monday, euro zone finance ministers agreed on a 30
billion euro ($40.8 billion) aid package of loans, which Greece
could tap if needed, with at least 10 billion euros also
expected from the International Monetary Fund. For details see
[ID:nLDE63A0BO]
 Mulraine said the next key drivers for global currency
markets will be U.S. retail sales and inflation data, both due
on Wednesday.
 At 7:29 a.m. (1429 GMT), the Canadian dollar CAD=D3 was
at C$1.0029 to the U.S. dollar, or 99.71 U.S. cents, slightly
higher than Monday's close at C$1.0033 to the U.S. dollar, or
99.67 U.S. cents.
 On Monday the Canadian dollar rose as high as C$1.0011 to
the U.S. dollar,  or 99.89 U.S. cents, after Bank of Canada
surveys pointed to an upbeat business mood, enhancing the
market notion that the central bank would raise interest rates
at midyear.
 Oil prices fell for a fifth straight session below $84 a
barrel and gold eased in Europe, which could also affect
Canada's commodity-linked currency. [O/R] [GOL/]
 Canadian bond prices also lacked momentum, and were flat to
higher across the curve as U.S. Treasuries traded sideways.
[US/]
 The two-year government bond CA2YT=RR was half a Canadian
cent higher at C$99.345 to yield 1.855 percent, while the
10-year bond CA10YT=RR added 5 Canadian cents to C$100.750 to
yield 3.653 percent.
 (Reporting by Claire Sibonney; Editing by Theodore d'Afflisio)