CANADA FX DEBT-Canadian dollar holds firm above parity
* C$ rises to C$0.9984 or $1.0016
* Bonds higher across the curve
By Claire Sibonney
TORONTO, April 26 (Reuters) - The Canadian dollar rose slightly against its U.S. counterpart on Monday, remaining above parity, as a rally in global equities and optimism over aid for debt-stricken Greece supported riskier assets.
U.S. stock index futures were higher on the first session after hitting a 19-month high on a flurry of merger-and-acquisition activity and Caterpillar's stronger-than-expected quarterly profit. [.N]
Markets were also cautiously optimistic after a Greek official said an aid package would help avert a sovereign debt default and stocks jumped sharply worldwide as a raft of U.S. data last week showed economic recovery was gathering strength. [MKTS/GLOB]
At 8:15 a.m. (1215 GMT), the Canadian dollar CAD= was at C$0.9984 to the U.S. dollar, or $1.0016, up from Friday's finish at C$0.9991 or $1.0009.
Matthew Strauss, senior currency strategist at RBC Capital Markets, said markets will be looking for direction in the euro zone from Germany, which demanded further austerity measures before aid is granted. For more see [ID:nLDE63P0LU].
Investors will also be eyeing a monetary policy decision from the U.S. Federal Open Market Committee, U.S. GDP figures and, on the domestic front, parliamentary appearances by Bank of Canada Governor Mark Carney.
"Very quiet start to the week ... We had some of the Greece news overnight but from a market perspective it didn't change much," said Strauss.
Strauss pointed to oil prices near $85 a barrel providing some support for the commodity-linked Canadian dollar. [O/R]
Canadian bond prices rose slightly across the curve, following U.S. Treasuries higher as core fixed income markets remained well bid. [US/]
The two-year Canadian government bond CA2YT=RR was up 2 Canadian cents at C$99.145 to yield 1.973 percent, while the 10-year bond CA10YT=RR gained 15 Canadian cents to C$100.550 to yield 3.678 percent. (Reporting by Claire Sibonney; Editing by James Dalgleish)
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