February 22, 2010 / 3:29 PM / 10 years ago

CANADA FX DEBT-Canadian dollar dips after hitting month-high

 * C$ slightly lower at 95.92 U.S. cents
 * Bonds mixed across the curve
 TORONTO, Feb 22 (Reuters) -  The Canadian dollar eased from
more than a one-month high earlier in the session as North
American stocks and commodity prices pared gains, weighing on
risk appetite.
 North American stocks opened in positive territory but
quickly turned negative as oil held just below $80 a barrel,
reversing much of an earlier gain to a six-week high.
 With no major Canadian or U.S. economic data on tap for the
day, trading in the Canadian currency could prove light.
 "I think we're more drifting sideways than anything right
now and I suspect we aren't really going to get much out of
things today," said Michael Gregory, senior economist BMO
Capital Markets.
 At 10:13 a.m. (1513 GMT), the Canadian dollar was at
C$1.0425 to the U.S. dollar or 95.92 U.S. cents, down from
Friday's close at C$1.0405 or 96.11 U.S. cents. Earlier the
Canadian currency hit 1.0371 or 96.42 U.S. cents, its highest
since Jan. 20.
 Investors are looking ahead to later in the week for  U.S.
Federal Reserve Chairman Ben Bernanke's semiannual
congressional testimony for more clues on monetary policy.
 Canadian bond prices were mixed across the curve, as
fixed-income markets continued to digest last week's news about
the Fed raising its discount lending rate.
 The two-year Canadian government bond CA2YT=RR was little
changed at C$100.215 to yield 1.391 percent, while the 10-year
bond CA10YT=RR fell 16 Canadian cents to C$101.830 to yield
3.517 percent.
 "Today it's just going to be a little bit of payback for
the sell-off we had in the wake of the discount rate hike last
week," said Gregory.
 (Reporting by Claire Sibonney; Editing by Frank McGurty)

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