CANADA FX DEBT-C$ a tad weaker after North American jobs reports

Fri Jun 6, 2014 9:18am EDT

* Canadian dollar at C$1.0937, or 91.43 U.S. cents
    * Bond prices higher across the maturity curve

    By Leah Schnurr
    TORONTO, June 6 (Reuters) - The Canadian dollar was slightly
weaker against the greenback on Friday as investors weighed an
underwhelming domestic jobs report against data that showed a
solid pace of hiring south of the border.
    The Canadian economy created 25,800 jobs last month, largely
in line with expectations, but the positions were part-time.
 
    Economists said the details were more disappointing than the
overall figure. In contrast, U.S. employment returned to its
pre-recession level with 217,000 jobs added in May.
 
    The loonie saw some choppy trading immediately following the
reports, swinging in both directions before ultimately pulling
slightly lower. 
    "It's slightly negative just because the U.S. report was a
bit better than expected, whereas the details of the Canadian
release are a bit disappointing," said Doug Porter, chief
economist at BMO Capital Markets in Toronto. 
    "So I would say on balance it's a small strike against the
Canadian dollar, but I don't think it's going to change the
channel on the currency."
    The Canadian dollar was at C$1.0937 to the
greenback, or 91.43 U.S. cents, modestly weaker than Thursday's
close of C$1.0929, or 91.50 U.S. cents.
    "We see the Canadian dollar weaken and the (U.S.) dollar pop
higher once we realize some of the details in the U.S. may be a
little better," said David Tulk, chief Canada macro strategist
at TD Securities.
    The loonie has been trading in a slim range in recent weeks
and analysts say it will likely be comfortable trading around
either side of C$1.10 for some time.
    Canadian government bond prices were higher across the
maturity curve, with the two-year up 1.8 Canadian
cents to yield 1.050 percent and the benchmark 10-year
 up 26 Canadian cents to yield 2.303 percent.

 (Additional reporting by Allison Martell and Solaria Ho;
Editing by Bernadette Baum)
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