CANADA FX DEBT-C$ squeezes out small gain; Greece talks down to wire

Fri Jun 26, 2015 4:50pm EDT
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(Updates throughout; adds details, closing figures, market
    * Canadian dollar at C$1.2315, or 81.20 U.S. cents
    * Bond prices mostly lower across the maturity curve

    By Solarina Ho
    TORONTO, June 26 (Reuters) - The Canadian dollar eked out a
small gain against the greenback on Friday as the currency
followed crude prices, which pared earlier losses, but overall
currency markets were range-bound as a resolution over Greece's
debt remained elusive.
    Talks between the debt-laden country and its creditors were
coming down to the wire, with last-ditch efforts planned for the
    "For the most part, the theme today is still risk aversion.
We don't know what's going to happen with Greece," said Rahim
Madhavji, President at "In the short term,
it's still going to range-bound for a while. The one powder keg
remains Greece."
    The Canadian dollar, which was off about 0.3
percent on the week, finished at C$1.2315 to the greenback, or
81.20 U.S. cents, a touch firmer than the Bank of Canada's
official close of C$1.2323, or 81.15 U.S. cents, on Thursday.
    This was well off the C$1.2397 the currency traded at
earlier in the session, when crude oil prices were down more
than 1 percent.
    "We saw oil prices jump up quite a bit from its lows ... the
loonie's followed it directionally for the day," said Madhavji.
    Oil ended little changed, as investors awaited news on
Greece and Iran faced ongoing challenges securing a nuclear
agreement to end sanctions on its oil exports.
    U.S. crude settled down 7 cents, or 0.1 percent, at
$59.63 a barrel, while Brent crude settled up 6 cents,
or 0.1 percent, at $63.26. 
    Market liquidity was thinning out heading into next week's
Canada Day holiday on Wednesday and the U.S. Fourth of July
holiday on Friday, which could result in bigger moves coming
from relatively small volumes.
    Canadian government bond prices were generally lower across
the maturity curve, with the two-year price down 3
Canadian cents to yield 0.634 percent and the benchmark 10-year
security falling 49 Canadian cents to yield 1.868
    The Canada-U.S. two-year bond spread was -7.80 basis points,
while the 10-year spread was -60.8 basis points.

 (Reporting by Solarina Ho; editing by Jeffrey Benkoe and Chizu