CANADA FX DEBT-C$ shifts lower, bonds higher after data

Thu Jun 17, 2010 11:35am EDT
 
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 * C$ lower at 96.99 U.S. cents
 * Bond prices turn higher after data
 (Updates to midmorning, adds details)
 TORONTO, June 17 (Reuters) - The Canadian dollar turned
lower on Thursday, while bonds charged higher, at midmorning as
investors became more guarded after several data releases that
suggested a tepid recovery.
 Earlier, the Canadian dollar was firmer as investors were
taking on more risk following Spanish bond issues that drew
strong demand, which kept concerns about Europe's debt troubles
at bay. [ID:nLDE65G1HJ]
 But sentiment shifted after a disappointing wholesale trade
figure for April in Canada and an unexpected rise in new weekly
U.S. claims for jobless aid. Also, U.S. consumer prices notched
their largest decline in nearly 1-1/2 years in May and factory
activity in the mid-Atlantic region braked to its slowest pace
in 10 months in June. [ID:N17207354]  [ID:nN17254724]
 "It feels like the market is generally taking a more
cautious turn again," said Eric Lascelles, chief Canada macro
strategist, at TD Securities.
 "Part of it is the U.S. economic figures are looking soft,
which is raising some doubt about the global recovery."
 At 11:15 a.m. (1515 GMT), the Canadian currency was at
C$1.0310 to the U.S. dollar, or 96.99 U.S. cents, down from
Wednesday's finish at C$1.0254 to the U.S. dollar, or 97.52
U.S. cents.
 The two-year government bond CA2YT=RR jumped 11 Canadian
cents to yield 1.715 percent, while the 10-year bond
CA10YT=RR gained 55 Canadian cents to yield 3.292 percent.
 (Reporting by Ka Yan Ng; editing by Mario Di Simine )