CANADA FX DEBT-C$ flat, bonds down as Greek deal stalls

Mon Jun 20, 2011 4:44pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * C$ ends exactly same as Friday's close at $1.0202
 * Bond prices turn lower, risk assets find favor again
 (Adds details)
 By Ka Yan Ng
 TORONTO, June 20 (Reuters) - Canada's dollar CAD=D4
closed at exactly the same level against the U.S. dollar on
Monday as it did on Friday, while bond prices fell, as markets
absorbed news of a delay on a loan deal for Greece.
 With no North American data to guide trading,
foreign-exchange and fixed-income markets were left to seek
direction from global equity and commodity markets, which
started the day under pressure from the lack of weekend
progress on Greece's debt troubles. [MKTS/GLOB]
 Euro zone finance ministers delayed a final decision to
July on extending another 12 billion euros in emergency loans
to Greece, saying Athens would first have to introduce harsh
austerity measures. For details, see [ID:nLDE75I0FM]
 The Canadian dollar fell as low as C$0.9849 to the U.S.
dollar early on, but pared losses throughout the session to
close flat at C$0.9802 to the U.S. dollar, or $1.0202, exactly
the same as Friday's North American close.
 The two-year bond CA2YT=RR lost 6 Canadian cents to yield
1.521 percent, while the 10-year bond CA10YT=RR shed 17
Canadian cents to yield 2.966 percent.
 While investors wrestled with whether Greece's fiscal
crisis posed risks to the global economy, some riskier assets
were favored as the day wore on. Toronto's main stock index
rose, and U.S. crude oil futures also perked up.
 "Things seemed to turn around as the day went on. Worries
about Greece eased and the worries seemed a little overdone in
the morning anyway," said Benjamin Reitzes, economist at BMO
Capital Markets.
 "We already knew they weren't going to come to any solution
in that meeting. There's really no real new news."
 Canada stepped up pressure on Europe on Monday to swiftly
resolve the Greek debt crisis, warning that failure to do so
could harm even Canada's relatively healthy banking sector.
[ID:nN1E75J0OH]
 In a sign that Europe's partners are increasingly jittery
about a possible Greek default, Canadian Finance Minister Jim
Flaherty said finance ministers and central bankers from the
Group of Seven advanced economies discussed these concerns.
 "The key, I think, and our message, is that delay is not
desirable," Flaherty told reporters in Toronto.
 Markets will next focus on Canadian retail sales for April,
the Canadian leading economic indicator for May, and U.S.
existing home sales for May, all on Tuesday morning.
  (Reporting by Ka Yan Ng; editing by Peter Galloway)