CANADA FX DEBT-Canada dollar slides on dim commodities outlook
* C$ slides 0.4 percent, approaches key technical levels
* Bonds up on disappointment over outcome of G20 meeting
By John McCrank
TORONTO, Nov 17 (Reuters) - Canada's dollar fell against the U.S. dollar on Monday, as investors worried about the dimming long-term prospects for the prices of oil and other commodities that Canada exports.
Canadian bond prices, with no domestic data to influence moves, rose on a safe-haven bid after an emergency summit of leaders from the Group of 20 nations ended with few concrete proposals.
At 9:45 a.m. (1445 GMT), the Canadian dollar was at C$1.2308 to the U.S. dollar, or 81.25 U.S. cents, down from C$1.2255 to the U.S. dollar, or 81.60 U.S. cents, at Friday's close.
Crude oil prices moved from negative to positive on Monday, but more important than the short-term moves were the long-term prospects for demand, which have dwindled along with global growth, said David Watt, senior currency strategist at RBC Capital Markets.
"I'm almost prepared at present to dismiss rallies in the Canadian dollar until I get clear evidence that the global financial backdrop and the global economic backdrop are starting to improve and that just doesn't seem to be happening," he said.
Canada is a major exporter of many key commodities and is the biggest supplier of oil to the United States.
Watt also said that the Canadian dollar is getting close to technical levels, at around C$1.2436 to the U.S. dollar, that could trigger automatic trades and send it sharply lower versus its U.S. counterpart.
The currency hit a weakpoint of C$1.2426 to the greenback, in the overnight session.
BOND PRICES RISE
Canadian bond prices rallied along side the larger U.S. market, but unwound some as investors contemplated the results of the G20 summit in Washington over the weekend.
"People came out of the G20 meeting a little bit disappointed, or at least unexcited by the developments," said Eric Lascelles, chief economics and rates strategist at TD Securities.
There was no announcement of any coordinated plans on central bank rates or fiscal policy at the emergency summit, though there was an emphasis that some of that could be necessary sometime in the future.
"A little bit of a mixed message there, but ultimately that slight amount of disappointment contributing to the rally in the bond market," said Lascelles.
The Canadian overnight Libor rate LIBOR01was 2.5000 percent, up from 2.4667 percent on Friday.
Friday's CORRA rate CORRA= was 2.2425 percent, down slightly from 2.2460 percent on Thursday. The Bank of Canada publishes the previous day's rate at around 9 a.m. daily.
The two-year bond gained 1 Canadian cent to C$101.69 to yield 1.901 percent. The 10-year bond climbed 27 Canadian cents to C$105.17 to yield 3.603 percent.
The yield spread between the two- and 10-year bond was 181 basis points, up from 180 at the previous close.
The 30-year bond added 35 Canadian cents to C$113.15 to yield 4.204 percent. In the United States, the 30-year Treasury yielded 4.211 percent.
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