CANADA FX DEBT-C$ weakens to nearly 2-week low as oil, stocks fall

Thu Jun 16, 2016 9:59am EDT
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* Canadian dollar at C$1.3025, or 76.78 U.S. cents
    * Loonie touched weakest since June 3 at C$1.3044
    * Bond prices mixed across the maturity curve
    * 10-year yield lowest since Feb. 12 at 1.059 pct

    TORONTO, June 16 (Reuters) - The Canadian dollar weakened to
a nearly two-week low against its U.S. counterpart on Thursday,
pressured by lower oil and stock prices as the risk mounted that
Britain may leave the European Union.    
    British support for leaving the bloc in a June 23 referendum
has risen to 53 percent, a telephone poll showed on Thursday,
the highest support recorded by the pollster for the "Leave" or
"Brexit" campaign in more than three years. 
    Economists have warned that a so-called Brexit could trigger
financial market volatility and weaken the outlook for the
global economy and commodity prices.
    Oil prices fell for a sixth straight day and European shares
hit a four-month low, weighing on Canada's risk-sensitive
commodity-linked currency.  
    U.S. crude prices were down 2.02 percent at $47.04 a
    Canadian growth is likely to be flat or slightly negative in
the second quarter due to the impact of the Alberta wildfires
before an outsized recovery takes hold in the third quarter, the
Bank of Canada said on Wednesday. 
    At 9:37 a.m. EDT (1337 GMT), the Canadian dollar 
was trading at C$1.3025 to the greenback, or 76.78 U.S. cents,
weaker than Wednesday's close of C$1.2926, or 77.36 U.S. cents.
    The currency's strongest level of the session was C$1.2897,
while it touched its weakest since June 3 at C$1.3044.
    Foreign investors bought a net C$15.52 billion ($11.94
billion) in Canadian securities in April, the fourth straight
month of relatively significant purchases, Statistics Canada
    Canadian government bond prices were mixed across the
maturity curve, with the two-year price down 0.5
Canadian cent to yield 0.482 percent and the benchmark 10-year
 rising 11 Canadian cents to yield 1.07 percent.
    The 10-year yield hit its lowest since Feb. 12 at 1.059

 (Reporting by Fergal Smith; Editing by Bernadette Baum)