September 8, 2015 / 1:22 PM / in 2 years

CANADA FX DEBT-C$ strengthens ahead of Wednesday Bank of Canada rate call

* Canadian dollar at C$1.3225, or 75.61 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, Sept 8 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Tuesday, boosted by a rising
price for Brent crude and ahead of Wednesday's Bank of Canada
interest rate decision.
    The central bank is expected to hold rates steady until
2017, although a quarter of economists polled by Reuters last
week said the bank could cut for a third time this year.
 
    * At 8:59AM ET (1259 GMT), the Canadian dollar was
trading at C$1.3225 to the greenback, or 75.61 U.S. cents,
stronger than Bank of Canada's official close on Friday of     
C$1.3265, or 75.39 U.S. cents.
    * Trading was limited on Monday by public holidays in both
Canada and the United States, but closed at C$1.3306 according
to Thomson Reuters data.
    * U.S. crude prices were down 1.1 percent to $45.54,
while Brent crude added 2.6 percent to $48.87. 
    * The Canadian dollar, which was also outperforming the
euro, the yen, and the Swiss franc, is expected to trade between
C$1.3190 and C$1.3280 against the U.S. dollar on Tuesday,
according to RBC Capital Markets analyst George Davis.
    * Canadian government bond prices were lower across the
maturity curve, with the two-year price down 4
Canadian cents to yield 0.463 percent and the benchmark 10-year
 falling 44 Canadian cents to yield 1.486 percent.
    * The Canada-U.S. two-year bond spread was -27 basis points,
while the 10-year spread was -70.3 basis points. 
    

 (Reporting by Alastair Sharp; Editing by Frances Kerry)

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