CANADA FX DEBT-C$ falls, pressured by fresh 2 1/2-month low for crude oil
* Canadian dollar at C$1.3322, or 75.06 U.S. cents * Bond prices climb across the maturity curve By Fergal Smith TORONTO, Nov 13 (Reuters) - The Canadian dollar slipped against the U.S. dollar on Friday, though it held above Thursday's six-week low, as a fresh 2 1/2-month low for crude oil prices offset weaker-than-expected U.S. retail sales data that triggered a brief loonie rally. The International Energy Agency added to concerns about oversupply in the oil market, saying in a monthly report that stockpiles are at a record 3 billion barrels. U.S. retail sales rose just 0.1 percent in October, below analyst expectations for a 0.3 percent gain. At 8:57 a.m. EST (1357 GMT), the Canadian dollar was at C$1.3322 to the greenback, or 75.06 U.S. cents, weaker than the Bank of Canada's official close of C$1.3282, or 75.29 U.S. cents, but above Thursday's six-week low of C$1.3342. The currency's strongest level of the session was C$1.3267, while its weakest was C$1.3324. Bank of Canada Senior Deputy Governor Carolyn Wilkins, in an interview with the Globe and Mail, said the central bank was confident the housing sector would achieve a soft landing. She did not address current monetary policy or the state of the economy in her speech in Toronto on the topic "Innovation, Central-Bank Style." Speaking to the audience after, Wilkins said the current interest rate of 0.5 percent is appropriate. U.S. crude prices were down 0.53 percent to $41.53, while Brent crude added 0.70 percent to $44.37. Canada is a major oil producer and weaker oil prices tend to reduce the country's terms of trade and its economic outlook. Canadian government bond prices were higher across the maturity curve, supported by weak U.S. data and the rotation out of risk assets, including stocks and commodities. The two-year price rose 6 Canadian cents to yield 0.618 percent and the benchmark 10-year rose 29 Canadian cents to yield 1.668 percent. The Canada-U.S. two-year bond spread was -24.5 basis points, trading 1.5 basis points wider, while the 10-year spread was -62.6 basis points, trading 0.7 of a basis point wider, as Canadian government bonds outperformed on the implications for the economy of the depressed crude oil price. (Editing by Bernadette Baum)
© Thomson Reuters 2017 All rights reserved.