CANADA FX DEBT-C$ weakens as oil holds around its lowest in a month
* Canadian dollar at C$1.3033, or 76.73 U.S. cents * Bond prices mixed across the maturity curve TORONTO, April 4 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday as oil held around its lowest in a month, although the currency traded in a narrow range as the market braced for trade and employment data later in the week. The currency has consolidated recent strength since touching a 5-1/2-month high at C$1.2859 on Thursday, when stronger than expected economic growth in January further dented expectations for a Bank of Canada rate cut. Oil prices dipped as investors ditched some of their bullish bets on another price rise and the chances that top exporters will agree to rein in overproduction appeared to fade. February trade data is awaited on Tuesday, with economists watching for further strength in the export sector. The March unemployment report is due at the end of the week. At 9:28 a.m. EDT (1328 GMT), the Canadian dollar was trading at C$1.3033 to the greenback, or 76.73 U.S. cents, slightly weaker than Friday's close of C$1.3014, or 76.84 U.S. cents. The currency's strongest level of the session was C$1.3020, while its weakest was C$1.3082. Speculators further cut bearish bets on the Canadian dollar from extreme levels seen in January, Commodity Futures Trading Commision (CFTC) data showed on Friday. Net short Canadian dollar positions fell to 6,180 contracts in the week ended March 29 from 15,009 in the prior week. Bank of Canada Governor Stephen Poloz and Deputy Governor Carolyn Wilkins will speak to elementary students at 10 a.m. EDT (1400 GMT) about the public consultations to choose a woman to appear on a bank note. The event will be webcast live on the Bank of Canada's website, but remarks will not be published and analysts are not expecting current policy to be addressed. Canadian government bond prices were mixed across the maturity curve, with the two-year price down 0.5 Canadian cent to yield 0.547 percent and the benchmark 10-year rising 5 Canadian cents to yield 1.233 percent. The Canada-U.S. two-year bond spread narrowed 2.3 basis points to -19.7 basis points, while the 10-year spread narrowed 1.6 basis points to -53.6 basis points. The 10-year spread traded at its least negative since Oct. 20 as U.S. Treasuries outperformed following dovish comments last week from Federal Reserve Chair Janet Yellen. The Canadian province of Saskatchewan, holds an election. The right-leaning Saskatchewan Party is expected to stay in power. (Reporting by Fergal Smith; Editing by Nick Zieminski)
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