CANADA FX DEBT-C$ gains as markets bet on Greek debt deal

Mon Jun 22, 2015 10:00am EDT
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* Canadian dollar at C$1.2250 or 81.63 U.S. cents
    * Bond prices mixed across the maturity curve

    TORONTO, June 22 (Reuters) - The Canadian dollar gained
ground against its U.S. counterpart on Monday as optimism that
Greece and its creditors were on their way to a breakthrough
debt deal kept it strong even after oil prices turned lower and
the greenback reversed early losses. 
     Prices for oil, a key Canadian export, lost ground after
their early gains had strengthened the loonie.   
     Sentiment in global markets, which had been jittery about
the uncertainty surrounding a potential debt default by Greece,
was optimistic that a last-minute deal could be reached.
    * At 9:30 a.m. EDT (1330 GMT), the Canadian dollar 
was at C$1.2250 to the greenback, or 81.63 U.S. cents, firmer
than the Bank of Canada's official close of C$1.2266, or 81.53
U.S. cents, on Friday.
    * The currency's strongest level of the session was
C$1.2218, while its weakest level was C$1.2277.
    * No notable Canadian economic data is expected this week.
    * U.S. crude prices were down 0.87 percent at  $59.09
a barrel after touching $60.30 earlier, while Brent crude
 lost 0.68 percent to $62.59, after hitting $63.74. 
    * The Canadian dollar is expected to trade between C$1.2190
and C$1.2270 against the U.S. dollar during the North American
session on Monday, according to RBC Capital Markets.
    * Canadian government bond prices were mixed across the
maturity curve, with longer-term bonds falling. The two-year
 price was down 5 Canadian cents to yield 0.618
percent and the benchmark 10-year fell 45 Canadian
cents to yield 1.763 percent.
    * The Canada-U.S. two-year bond spread was -3.50 basis
points, while the 10-year spread was -56.6 basis points.

 (Reporting by Solarina Ho; Editing by Peter Galloway)