CORRECTED - CANADA FX DEBT-C$ up after Canada GDP data

Wed Aug 31, 2011 9:50am EDT
 
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 (Corrects the bullet points and the first and fifth paragraphs
to remove references to U.S. private-sector jobs data being
better than expected.)
 * C$ rises to C$0.9758 vs US$, or $1.0248
 * Bond prices mixed across curve
 * Canada economy shrinks in Q2, first time since recession
 * Canada's June GDP shows rebound from May
 * U.S. private sector adds 91,000 jobs in August
 (Updates with details, commentary)
 By  Claire Sibonney
 TORONTO, Aug 31 (Reuters) - The Canadian dollar ticked up
against the U.S. dollar on Wednesday morning after a mixed
reading on domestic growth figures was offset by modest growth
in U.S. private employment data, and stronger U.S. equities.
 In Canada, simultaneous reports showed the Canadian economy
shrank in the second quarter -- the first quarterly fall since
the 2008-09 recession -- largely due to temporary factors such
as the huge earthquake and tsunami in Japan in March. However,
growth in June rebounded after falling in May. For more see
[ID:nN1E77U099].
 "There may have been a knee-jerk reaction, but I'm not
seeing any long-lasting effect," said Sal Guatieri, senior
economist at BMO Capital Markets.
 "The report does not carry many implications for monetary
policy, even though quarterly growth came in a little weaker
than expected, June GDP came in a little better than expected,
raising hopes that the economy bounced back in the third
quarter."
 The currency also picked up after a private report showed
modest growth of 91,000 jobs in U.S. private jobs in August,
soothing some worries about a recession, and as U.S. stock
futures rose on stimulus hopes. [ID:nEAPAV0EH0]
 At 9:14 a.m. (1314 GMT), the Canadian dollar CAD=D4 stood
at C$0.9758 to the U.S. dollar, or $1.0248, up from Tuesday's
North American session close at C$0.9782 to the U.S. dollar, or
$1.0223.
 The currency was little changed going into the domestic
reports, and briefly turned negative following the
disappointing second-quarter headline.
 Canadian bond prices were mixed across the curve.
 The interest-rate sensitive two-year bond CA2YT=RR was up
15 Canadian cents to yield 1.020 percent, while the 10-year
bond CA10YT=RR slipped 5 Canadian cents to yield 2.408
percent.
  (Editing by James Dalgleish)