CANADA FX DEBT-C$ firms ahead of GDP data and as oil supports
* C$ up C$0.9779 to the U.S. dollar, or $1.0226
* Bond prices mixed across the curve
By Solarina Ho
TORONTO, Feb 28 (Reuters) - The Canadian dollar strengthened against the greenback on Monday, hitting a new three-year high overnight on Monday, as the currency extended gains ahead of Canadian economic growth data this morning and as recent gains in oil prices continued to provide support.
At 8:30 a.m. (1330 GMT), Canada will report its December and fourth-quarter GDP data. [ID:nN25184196]
Oil prices have surged in recent sessions fueled by the Libyan crisis, though reassurances from Saudi Arabia that extra supply needs have been met have eased the price spike. [O/R]
"The value of the currency is really of late being driven by oil prices primarily and expectations on central bank policy," said Mark Chandler, head of Canadian fixed income and currency strategy, adding that a large part of Monday's move could be dictated by the GDP report.
"Most people are looking for a decent increase...The numbers should reflect the better indicators that we've seen of late ... Better than expected net export performance may provide some strength for the currency."
At 7:55 a.m. (1255 GMT), the currency CAD=D4 stood at C$0.9779 to the U.S. dollar, or $1.0226, down from Friday's North American finish of C$0.9787, or $1.0218.
Overnight, the Canadian dollar rose as high as C$0.9754 against the U.S. dollar, its strongest level since March 2008.
Canadian bond prices were mixed across the curve. [US/]
The interest rate-sensitive two-year bond CA2YT=RR was up 1 Canadian cent to yield 1.776 percent, while the 10-year bond CA10YT=RR added 8 Canadian cents to yield 3.282 percent.
(Editing by Chizu Nomiyama)
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