CANADA FX DEBT-C$ rises as oil rallies on Middle East tensions

Tue Nov 24, 2015 9:44am EST
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* Canadian dollar at C$1.3339 or 74.97 U.S. cents
    * Bond prices mixed across the maturity curve

    TORONTO, Nov 24 (Reuters) - The Canadian dollar firmed
against the U.S. dollar on Tuesday, helped by the rally in crude
oil on raised geopolitical tensions, while the U.S. gross
domestic product was revised higher for the third quarter, in
line with expectations.
    Turkey shot down a Russian warplane near the Syrian border
, helping to drive crude oil prices and safe-haven
assets higher.
    U.S. crude prices were up 3.26 percent to $43.11 a
barrel, while Brent crude added 3.06 percent to
    The U.S. economy grew at a healthier clip in the third
quarter than initially thought, suggesting resilience that could
give the Federal Reserve confidence to raise interest rates next
month, although efforts by businesses to reduce an inventory
bloat had not been as aggressive as previously believed.
    At 9:23 a.m. EST (1423 GMT), the Canadian dollar 
was trading at C$1.3339 to the greenback, or 74.97 U.S. cents,
firmer than the Bank of Canada's official close of C$1.3373, or
74.78 U.S. cents.
    The currency hit a seven-week low on Monday at 1.3436,
having moved back in sight of the 11-year low hit in September
at 1.3457.
    Canadian government bond prices were mixed across the
maturity curve, with the two-year price up 1.5
Canadian cents to yield 0.615 percent and the benchmark 10-year
 falling 4 Canadian cents to yield 1.616 percent.
    * The Canada-U.S. two-year bond spread narrowed 1.5 basis
points to -30.8 basis points, while the 10-year spread was 1.3
basis points narrower at -62.5 basis points, as Treasuries
outperformed on the flight to quality.
    The domestic data calendar is empty.
    Bank of Canada Deputy Governor Lynn Patterson will give a
presentation on the topic "Promoting Canada's Economic and
Financial Well-Being" at 5:35 p.m. EST (2235 GMT), the last
scheduled appearance by a policymaker before the central bank's
next interest rate decision due Dec. 2.

 (Reporting by Fergal Smith; Editing by Nick Zieminski)