June 26, 2018 / 2:00 PM / 5 months ago

CANADA FX DEBT-C$ nearly flat as stocks stabilize; investors eye Poloz speech

    * Canadian dollar at C$1.3293, or 75.23 U.S. cents
    * Price of U.S. oil rises 0.5 percent
    * Bond prices lower across a flatter yield curve
    * Canada-U.S. 10-year spread hits widest in more than a year

    TORONTO, June 26 (Reuters) - The Canadian dollar steadied
against its U.S. counterpart on Tuesday as equity markets grew
calmer after they had been buffeted on Monday by rising trade
tensions, and investors braced for an upcoming speech by
Canada's central bank governor.
    Bank of Canada Governor Stephen Poloz will give a speech and
press conference on Wednesday in Victoria, British Columbia.
Markets will be watching for any hints as to whether the central
bank will raise interest rates at its upcoming meeting in July.
    Modest gains from Europe's main bourses relieved nervy
investors, after the latest escalation in an increasingly global
trade storm pummeled Wall Street and sent Chinese stocks into
'bear' market territory.             
    Canada exports many commodities and runs a current account
deficit so its economy could be hurt if the flow of trade or
capital slows.
    At 9:26 a.m. EDT (1326 GMT), the Canadian dollar         
was trading near flat at C$1.3293 to the greenback, or 75.23
U.S. cents.
    The currency traded in a range between C$1.3281 and
C$1.3329. On Friday, it touched its weakest level in a year at
C$1.3384.      
    Canada could lose as much as 10 percent of its oil supply in
July after a power outage last week shut the Syncrude facility
in Alberta, which can produce up to 360,000 barrels per day.
            
    The price of oil was supported by Canadian production losses
and uncertainty over Libyan exports. U.S. crude        prices
were up 0.5 percent at $68.45 a barrel.             
    Canadian government bond prices were lower across a flatter
yield curve, with the two-year            down 4.5 Canadian
cents to yield 1.799 percent and the 10-year             falling
3 Canadian cents to yield 2.099 percent.
    Canada's 10-year yield fell 0.7 basis points further below
its U.S. equivalent to a spread of -78.7 basis points, its
widest gap since June 1, 2017.    

 (Reporting by Fergal Smith
Editing by Paul Simao)
  
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