CANADA FX DEBT-C$ holds steady in thin markets; Bank of Canada eyed
* Canadian dollar at C$1.2299 or 81.31 U.S. cents * Bond prices higher across the maturity curve TORONTO, May 25 (Reuters) - The Canadian dollar was steady against its U.S. counterpart on Monday in light holiday trading and ahead of a busy week in Canadian economic news. Investors are focused on the Bank of Canada's interest rate decision on Wednesday and first-quarter economic growth data on Friday. The loonie's pause comes after a retreat to a five-week low on Friday and with U.S. and many European markets closed for various holidays. * At 9:14 a.m. EDT (1314 GMT), the Canadian dollar was trading at C$1.2299 to the greenback, or 81.31 U.S. cents, little changed from the Bank of Canada's official close of C$1.2301, or 81.29 U.S. cents on Friday. * The currency traded within a relatively narrow range of between C$1.2276 and C$1.2307. * The price of oil, a key Canadian export and driver for the currency, was just marginally lower. U.S. crude was down 0.47 percent at $59.44, while Brent crude lost 0.06 percent to $65.33. * The loonie, which was weaker than most of its key currency counterparts, is expected to trade between C$1.2250 and C$1.2320 against the U.S. dollar on Monday, according to RBC Capital Markets. * Canadian government bond prices were generally higher across the maturity curve, with the two-year price up 1.5 Canadian cents to yield 0.673 percent and the benchmark 10-year rising 15 Canadian cents to yield 1.755 percent. * The Canada-U.S. two-year bond spread was 5.5 basis points, while the 10-year spread was -46.0 basis points. (Reporting by Solarina Ho; Editing by Lisa Von Ahn)
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