CANADA FX DEBT-C$ tumbles, bonds rise on Greek anxiety
* C$ slides to lowest since June 16
* C$ at C$0.9855 to the U.S. dollar, or $1.0147
* Bond price rally fueled by safety bid (Adds details)
TORONTO, June 24 (Reuters) - The Canadian dollar slid to its lowest point in more than a week against its U.S. counterpart on Friday, extending losses that started at mid-week on mounting concerns about euro zone woes.
Government bond prices rallied in a flight to safety ahead of the weekend.
Investors continued to worry that Greece's parliament may not pass the austerity measures needed for the country to secure more bailout funds.
In addition, the currency was hit for a second day by falling oil prices after consuming nations announced they were tapping strategic oil reserves to boost the economy. Canada is a major oil exporter.
Not even a brighter outlook for the U.S. economy could slow down the flight to safety. U.S. first-quarter economic growth was revised modestly higher on Friday and U.S. durable goods orders in May were also higher.
"We're clearly concerned about the ongoing issues in Europe and Greece and the market pessimism and the momentum in the market is so pronounced that even good news, like durable goods orders today, are completely ignored," said David Tulk, chief Canada macro strategist at TD Securities.
"Instead we're waiting for this wave of uncertainty (to subside) because there is this overriding belief that more can go wrong than can go right."
At 1:45 p.m. (1745 GMT), the currency CAD=D4 was at C$0.9855 to the U.S. dollar, or $1.0147, down from Thursday's North American finish of $0.9780 to the U.S. dollar, or $1.0225. Earlier, it fell as low as C$0.9879, or $1.0122 earlier, its lowest level since June 16.
The two-year bond CA2YT=RR jumped 12 Canadian cents to yield 1.387 percent, while the 10-year bond CA10YT=RR advanced 27 Canadian cents to yield 2.871 percent.
Of key concern to the global outlook is the health of the global factory sector, said David Watt, senior currency strategist at RBC Capital Markets, noting that the most recent string of data was far from encouraging.
A slew of purchasing manager indexes from around the world, including Canada, in coming weeks will offer a better read on how the world's factory sector is performing.
"Right now the signs are not all that encouraging. If you're a cyclical commodity-sensitive currency it's not the best situation and that's pretty much what Canada is," said Watt. (Reporting by Ka Yan Ng and Solarina Ho; editing by Peter Galloway)
© Thomson Reuters 2016 All rights reserved.