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