March 25, 2019 / 2:03 PM / 7 months ago

CANADA FX DEBT-C$ holds near 2-week low as growth prospects worry investors

    * Canadian dollar trades near flat vs greenback
    * Loonie touches weakest since March 11 at 1.3440
    * Price of oil falls 0.2 percent
    * Canada's yield curve inverts further

    TORONTO, March 25 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, holding near its
lowest in two weeks as investors worried about slower growth
prospects for the domestic and global economies.
    World stocks hit a 12-day trough as fears for economic
growth sent investors dashing for safe-haven assets, but the
selloff lost some momentum after better-than-expected data from
Germany.             
    The price of oil, one of Canada's major exports, fell as
growth concerns overshadowed support from tighter supply. U.S.
crude oil futures        were down 0.2 percent at $58.91 a
barrel.             
    Canada's 10-year yield traded 1.9 basis points further below
the yield on the 3-month T-bill to a spread of -7.2 basis
points.
    The curve inverted on Friday for the first time since 2007,
after domestic data showed weak inflation and a surprise drop in
retail sales.             
    Inversion is seen by some investors as a leading indicator
of recession. 
    At 9:42 a.m. (1342 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3425 to the greenback, or 74.49
U.S. cents. The currency touched its weakest intraday since
March 11 at 1.3440.
    Canada's trade report for January is due on Wednesday, while
January gross domestic product data is due on Friday.
    Canadian government bond prices edged higher across the
yield curve, with the two-year            price up 3 Canadian
cents to yield 1.518 percent and the benchmark 10-year
            rising 9 Canadian cents to yield 1.586 percent.
    The 10-year yield touched its lowest intraday level since
June 2017 at 1.583 percent.    

 (Reporting by Fergal Smith
Editing by Susan Thomas)
  
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