October 12, 2018 / 1:37 PM / in 7 days

CANADA FX DEBT-C$ firms as oil and stock prices rebound

    * Canadian dollar rises 0.2 percent against the greenback
    * Price of U.S. oil rises 1.4 percent
    * Canadian home prices were unchanged in September from
August 
    * Canada-U.S. 10-year spread widens by 2.7 basis points

    TORONTO, Oct 12 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Friday as oil and stock prices
rebounded, but the loonie was on track to end the week lower
after multi-year peaks for Treasury yields contributed to market
volatility.        
    The price of oil, one of Canada's major exports, pared some
of this week's losses despite a report from the International
Energy Agency that deemed supply adequate and the outlook for
demand weakening.             
    U.S. crude        prices were up 1.4 percent at $71.94 a
barrel.     
    Wall Street was set to rebound after the U.S. stock market's
worst two days of losses since February, helped by bumper
results for the country's largest bank, JPMorgan        .
            
    At 9:21 a.m. (1321 GMT), the Canadian dollar          was
trading 0.2 percent higher at 1.3010 to the greenback, or 76.86
U.S. cents.
    The currency, which on Thursday touched its weakest intraday
level in nearly two weeks at 1.3077, traded in a range of 1.3003
to 1.3040.
    For the week, the loonie was headed for a 0.5 percent
decline as investors worried that higher bond yields and trade
conflicts could hurt global economic growth. On Tuesday, the
International Monetary Fund cut its world gross domestic product
forecasts for the first time in two years.
    Canada runs a current account deficit so its economy could
suffer if the flow of trade or capital slows.
    Canadian home prices were unchanged in September from August
as the number of areas across the country posting price gains
declined, data showed on Friday.                
    While the monthly reading for the Teranet-National Bank
Composite House Price Index was flat, the year-over-year
increase picked up to 2.1 percent, helped by a decline in
September 2017.
    Canadian government bond prices were little changed across
the yield curve, with the 10-year             rising 1 Canadian
cent to yield 2.501 percent.
    The gap between Canada's 10-year yield and its U.S.
counterpart widened by 2.7 basis points to a spread of 65.7
basis points in favor of the U.S. bond.

 (Reporting by Fergal Smith
Editing by Phil Berlowitz)
  
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