Friday June 26, 05:18 PM
CANADA FX DEBT-C$ pares gains as oil price eases; bonds up
TORONTO, June 26 (Reuters) - The Canadian dollar cut early gains against the U.S. currency on Friday morning as oil prices turned lower and market players looked to consolidate positions heading into the weekend.
Early action saw the currency boosted by firm commodity prices, while the greenback weakened on a revival in investors' thirst for riskier assets. The currency reached as high as C$1.1445 to the U.S. dollar, or 87.37 U.S. cents.
However, the currency gave up much of those gains as the price of oil, a key Canadian export, fell to around $69 a barrel. Equity markets also came off session highs, taking a bite out of risk appetite.
At 11:30 a.m. (1530 GMT), the Canadian dollar was at C$1.1531 to the U.S. dollar, or 86.72 U.S. cents, up from C$1.1562 to the U.S. dollar, or 86.49 U.S. cents, at Thursday's close.
'I just think the way that equities have been slowly drifting off, it's been a bit of a consolidation day. We've probably seen a good part of the range for this session,' said Steve Butler, director of foreign exchange trading at Scotia Capital.
'We've had a couple of topsy-turvy days, but really no direction again this week.'
BONDS ADVANCE
As equity markets ground lower, Canadian bond prices were able to move higher across the curve, mimicking its U.S. counterparts.
Market players appeared to be taking the Bank of Canada's debt auction announcement in stride, despite the boost to issuance.
The central said on Thursday that gross government bond issuance in the current fiscal year would be about 25 percent higher than the C$82 billion originally forecast in the federal budget.
The benchmark two-year government bond rose 6 Canadian cents to C$100.08 to yield 1.207 percent, while the 10-year bond gained 10 Canadian cents to C$102.90 to yield 3.403 percent.
The 30-year bond was unchanged at C$118.50 to yield 3.905 percent. The comparable U.S. issue yielded 4.304 percent.
(Reporting by Ka Yan Ng; editing by Rob Wilson) For Reuters bond and money market pricing information double click on one of the following: Canadian dollar live quote, high/low Headlines from global forex markets Canadian bond prices Canadian money market prices Canada-U.S. spreads (live) World yield index 30 year benchmark - Montreal Exchange bond futures pricing information Bank of Canada monetary conditions index (Reuters calculation) Canada's call loan or overnight lending rate For the fixed-income market speed guides, double click on one of the following: For related news, double click on one of the following: Canadian news North American Treasuries news Money news Debt news Markets news Government debt news Money market news Interest rate news Central bank (CBSU.PK - news) news Canadian bond market stories Keywords: MARKETS CANADA/DOLLAR BONDS
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