February 28, 2011 / 1:17 PM / in 9 years

CANADA FX DEBT-C$ firms ahead of GDP data and as oil supports

   * C$ up C$0.9779 to the U.S. dollar, or $1.0226
 * Bond prices mixed across the curve
 By Solarina Ho
 TORONTO, Feb 28 (Reuters) - The Canadian dollar
strengthened against the greenback on Monday, hitting a new
three-year high overnight on Monday, as the currency extended
gains ahead of Canadian economic growth data this morning and
as recent gains in oil prices continued to provide support.
 At 8:30 a.m. (1330 GMT), Canada will report its December
and fourth-quarter GDP data. [ID:nN25184196]
 Oil prices have surged in recent sessions fueled by the
Libyan crisis, though reassurances from Saudi Arabia that extra
supply needs have been met have eased the price spike. [O/R]
 "The value of the currency is really of late being driven
by oil prices primarily and expectations on central bank
policy," said Mark Chandler, head of Canadian fixed income and
currency strategy, adding that a large part of Monday's move
could be dictated by the GDP report.
 "Most people are looking for a decent increase...The
numbers should reflect the better indicators that we've seen of
late ... Better than expected net export performance may
provide some strength for the currency."
 At 7:55 a.m. (1255 GMT), the currency CAD=D4 stood at
C$0.9779 to the U.S. dollar, or $1.0226, down from Friday's
North American finish of C$0.9787, or $1.0218.
 Overnight, the Canadian dollar rose as high as C$0.9754
against the U.S. dollar, its strongest level since March 2008.
 Canadian bond prices were mixed across the curve. [US/]
 The interest rate-sensitive two-year bond CA2YT=RR was up
1 Canadian cent to yield 1.776 percent, while the 10-year bond
CA10YT=RR added 8 Canadian cents to yield 3.282 percent.
(Editing by Chizu Nomiyama)

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