CANADA FX DEBT-C$ barely weaker as market awaits Bank of Canada
* Canadian dollar at C$1.3044, or 76.66 U.S. cents * Bond prices higher across the maturity curve TORONTO, July 13 (Reuters) - The Canadian dollar was barely weaker against its U.S. counterpart on Wednesday, as investors awaited the Bank of Canada's first economic update since Britain voted to leave the European Union. At 8:49 a.m. EDT (1249 GMT), the Canadian dollar was trading at C$1.3044 to the greenback, or 76.66 U.S. cents, weaker than the Bank of Canada's official Tuesday close of C$1.3030, or 76.75 U.S. cents. The Canadian central bank is expected to hold rates steady when it releases its quarterly monetary policy report at 10 a.m. EDT, but the market will be acutely sensitive to changes to the bank's outlook. A news conference will follow at 11:15 a.m. EDT. The Bank said in May that it expected the economy to shrink in the second quarter due to the wildfires that lashed Alberta's oil hub, before recovering later in the year. The currency stuck to a tight range in early trade, with its strongest level at C$1.3023 and its weakest at C$1.3085. Oil prices fell after the International Energy Agency (IEA) warned that a global supply glut threatened a price recovery and data showed an unexpected weekly gain in U.S. crude stocks. The Canadian dollar was underperforming most of its key currency counterparts. Canadian government bond prices were higher across the maturity curve, with the two-year price up 8 Canadian cents to yield 0.466 percent and the benchmark 10-year rising 57 Canadian cents to yield 0.999 percent. The Canada-U.S. two-year bond spread was -20.6 basis points, while the 10-year spread was -47.4 basis points. (Reporting by Alastair Sharp; Editing by Nick Zieminski)
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