CANADA FX DEBT-C$ slips on oil, bonds hit by US housing data
* Canadian dollar slips to 91.87 U.S. cents
* Bonds fall after stronger-than-expected U.S. house data
TORONTO, Sept 29 (Reuters) - The Canadian dollar was mildly softer versus the U.S. currency on Tuesday morning, easing along with the price of oil, which dipped on a weak demand outlook.
The Canadian dollar got a brief boost overnight after a top official at Russia's central bank said it may add currencies such as the Canadian and Australian dollars to its reserves, but the official said the bank has no plans to cut its holdings of U.S. Treasuries. [ID:nLT556258]
But a slight weakening in the oil price to $66.75 a barrel, [O/R] pulled the currency down towards C$1.09. Equity and energy markets often sway the direction of the Canadian dollar as they are seen as barometers of risk appetite.
At 9:34 a.m. (1334 GMT), the Canadian dollar was at C$1.0885 to the U.S. dollar, or 91.87 U.S. cents, down slightly from C$1.0875 to the U.S. dollar, or 91.95 U.S. cents, at Monday's close.
"The weights against the Canadian dollar right now are essentially a slightly weaker oil price. Equities look to be opening fairly mixed so that might be neutral," said Camilla Sutton, currency strategist at Scotia Capital.
"It's essentially in line with the other majors."
With no Canadian economic data on tap until Wednesday, when July gross domestic product figures are set to be released, currency and bond markets will likely eye Tuesday's U.S. existing home prices and consumer confidence reports for direction.
The S&P/Case-Shiller report showed U.S. single-family home prices rose in July from the previous month, surpassing forecasts and bolstering the case for housing market stability after a three-year plunge. [ID:nNYS005445]
That had a marginal impact on the Canadian dollar but it hit Canadian bonds, which extended early losses.
The two-year bond CA2YT=RR fell 4 Canadian cents to C$99.45 to yield 1.294 percent, while the 10-year bond CA10YT=RR sagged 24 Canadian cents to C$103.19 to yield 3.360 percent. The 30-year bond CA30YT=RR dropped 45 Canadian cents to C$118.80 to yield 3.884.
Separately IFR, a Thomson Reuters service, reported that the province of Ontario has launched a new $2 billion 10-year U.S. dollar bond. (Reporting by Ka Yan Ng; editing by Peter Galloway)
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