for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

CANADA FX DEBT-Canadian dollar tumbles to 7-week low as virus contagion escalates

    * Canadian dollar slides to lowest since mid-December 
    * Bond yields fall across the maturity curve
    * Canadian 2-year, 10-year yields fall to lowest since
October

 (Adds comment, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Jan 27 (Reuters) - The Canadian dollar sank to a
seven-week low against the U.S. dollar on Monday, weighed down
by lower oil prices, as investors dumped commodity-linked
currencies amid fears about the spread of the latest
coronavirus, which broke out in China a few weeks ago.
    The Australian and New Zealand dollars, also tied to
commodity prices like the Canadian currency, were under pressure
as well. 
    Investors are worried about the impact of the virus on
travel, tourism and the broader global economy. 
    U.S. crude oil prices fell on Monday to their lowest level
in more than three months on concerns that the virus could
hamper economic growth and reduce demand for fuel. U.S. crude
oil futures        were last down 2.2% $52.99 per barrel. 
    Oil prices have lost 13% of their value since news of the
virus grabbed headlines last week.
    The death toll from the virus rose to 81 on Monday, with
more than 2,800 infected. 
    A small number of cases linked to people who traveled from
Wuhan, China, have been confirmed in more than 10 countries,
including Thailand, France, Japan and the United States, but no
deaths have been reported outside China. Cambodia confirmed its
first case on Monday.             
    Canada reported its second case of the Wuhan coronavirus on
Monday. The wife of Canada's first confirmed patient with the
coronavirus tested positive for it at an Ontario laboratory,
with 19 other suspected cases under investigation, public health
officials said.             
    "All this fear is contributing to a broad 'risk-off' move in
global markets," said Erik Bregar, head of FX strategy at
Exchange Bank of Canada in Toronto.
    In afternoon trading, the U.S. dollar          rose 0.3%
against the Canadian currency to C$1.3180.  The greenback
earlier climbed to a seven-week peak of C$1.32. 
    The Canadian dollar has been on a downward trend since the
Bank of Canada took an unexpected dovish turn last week when it
left its benchmark interest rate steady at 1.75%, as expected,
but said a future cut was possible should a recent slowdown in
domestic growth persist.             
    In the debt market, Canadian government debt yields were
lower across the maturity curve, with the two-year yield
           down at 1.443%, versus 1.486% late on Friday. 
Canadian two-year yields fell to 1.435%, their lowest in more
than three months. 
    Benchmark Canadian 10-year yields fell to 1.309%            
from Friday's 1.362%. Earlier in the session, 10-year yields
declined to a 3-1/2-month low of 1.299%.

 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Jonathan
Oatis and Peter Cooney)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up