June 14, 2010 / 1:32 PM / 10 years ago

CANADA FX DEBT-C$ rises to near 4-week high, bonds sag

 * C$ climbs to 97.47 U.S. cents
 * Bonds sag as world recovery hopes rise
 TORONTO, June 14 (Reuters) - The Canadian dollar rose to a
near four-week high against the U.S. currency on Monday morning
bolstered by the rising price of oil and renewed hopes of a
global recovery.
 Canadian government bond prices slumped as dimming worries
about the world's economic health pushed investors toward
riskier assets such as stocks.
 The price of a oil rallied more than 2 percent to above $75
a barrel, while a couple of pieces of strong data also
underscored optimism about the world economic recovery. [O/R]
 Euro zone industrial output in April surged year-on-year
more than in any month in almost two decades, data showed on
Monday, along with strong Chinese export data, signaling global
growth remains robust. [ID:nLDE65D0YC]
 "There was overseas data and as well the St. Louis Fed
president noted the global economic recovery remains solid and
is unlikely to be derailed by the events in Europe," said John
Curran, senior vice president at CanadianForex, a commercial
dealing firm.
 "That's having some positive sentiment flowing through the
 St. Louis Federal Reserve Bank President James Bullard said
the strong global recovery underway was also unlikely to be
thrown off course by the improbable event of the bursting of an
asset bubble in China.  [ID:nTOE65D04O]
 At 9:15 a.m. (1315 GMT), Canada's dollar was at C$1.0260 to
the U.S. dollar, or 97.47 U.S. cents, up from C$1.0338 to the
U.S. dollar, or 96.73 U.S. cents, at Friday's close.
 The two-year government bond CA2YT=RR was off 8 Canadian
cents to yield 1.823 percent, while the 10-year bond
CA10YT=RR sagged 45 Canadian cents to yield 3.458 percent.
 (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)

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