CANADA FX DEBT-C$ ticks higher, bonds follow U.S. Treasuries

Mon Nov 15, 2010 8:55am EST
 
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 * C$ edges up to 99.14 U.S. cents
 * Canadian bond yields follow U.S. Treasuries higher
 TORONTO, Nov 15 (Reuters) - Canada's dollar edged up
against the U.S. dollar on Monday, mostly keeping within recent
ranges in a quiet start to the week that had investors mostly
eyeing external influences.
 The currency's range so far in the session was narrower
than Friday's, trading between C$1.0083-C$1.0140. At 8:10 a.m.
(1310 GMT), the Canadian dollar CAD=D4 was at C$1.0087 to the
U.S. dollar, or 99.14 U.S. cents, down from C$1.0091 to the
U.S. dollar, or 99.10 U.S. cents, at Friday's close.
 "The U.S. dollar is actually making some strides here, but
the Canadian dollar is up a little and the story here is that
it is still firmly embedded in the range of the last several
weeks," said Eric Lascelles, chief Canada macro strategist, at
TD Securities.
 The Canadian dollar stayed on the sidelines while the U.S.
dollar index hit a six-week high, boosted by a rise in U.S.
Treasury yields that helps keep yield spreads wide versus
government debt yields in other countries, maintaining the
appeal of U.S. assets. [ID:nLDE6AE0ZM] [FRX/]
 Stock markets, a barometer of risk appetite, were firmer as
investors anticipated Ireland would seek help to manage its
debts, easing fears about the stability of the euro zone.
[MKTS/GLOB]
 News that BHP Billiton had officially scrapped its $39
billion bid for Canadian fertilizer giant Potash Corp. had
little impact on the Canadian dollar. Ottawa had blocked the
proposed takeover of the year earlier in the month, and the
Canadian dollar had retreated on assumptions that the bid would
not be revived. [ID:nSGE6AD04O] [ID:nN04255002]
 A rebound in the price of oil, a key Canadian commodity,
was also supportive.
 Canadian government bond yields rose in concert with U.S.
Treasuries, which advanced after criticism from some U.S.
Federal Reserve officials raised doubt about it latest program
to buy Treasury bonds.
 The two-year bond CA2YT=RR slipped 9 Canadian cents to
yield 1.633 percent, while the 10-year bond CA10YT=RR was
down 45 Canadian cents to yield 3.067 percent.
 (Reporting by Ka Yan Ng)