CANADA FX DEBT-Canadian dollar holds firm above parity

Mon Apr 26, 2010 8:32am EDT
 
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   * 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)