February 15, 2018 / 2:33 PM / in 4 months

CANADA FX DEBT-C$ pulls back from 10-day high ahead of Schembri speech

    * Canadian dollar at C$1.2508, or 79.95 U.S. cents
    * Oil prices fall 0.7 percent
    * Bond prices lower across the yield curve
    * 5-year yield reaches its highest since September 2013

    TORONTO, Feb 15 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Thursday, pulling back from an
earlier 10-day high as oil prices fell and ahead of a speech by
Bank of Canada Deputy Governor Lawrence Schembri.
    At 9:09 a.m. EST (1409 GMT), the Canadian dollar         
was trading 0.1 percent lower at C$1.2508 to the greenback, or
79.95 U.S. cents, underperforming some other major currencies.
    The loonie's weakest level of the session was C$1.2525,
while it touched its strongest since Feb. 5 at C$1.2466.
    Schembri will speak on the country's approach to inflation
stability. Analysts will look for any update on the Bank of
Canada's inflation outlook and what impact it could have on the
path of monetary policy following three interest rate hikes
since last July.
    The central bank will release his prepared remarks at 13:30
p.m. EST (1830 GMT).    
    The price of oil, one of Canada's major exports, slipped as
record U.S. production and rising inventories outweighed a weak
U.S. dollar and Saudi Arabia's comments that major producers
were committed to their pact on cutting supplies.             
    U.S. crude        prices were down 0.7 percent at $60.18 a
barrel.     
    The U.S. dollar        fell against a basket of major
currencies, hitting a 15-month low against the yen, as negative
sentiment around the dollar outweighed a rise in 10-year U.S.
Treasury yields to their highest levels in four years.
            
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries after U.S. data showed a
stronger-than-expected rise in underlying producer prices.
            
    The five-year            dipped 4 Canadian cents to yield
2.162 percent and the 10-year             declined 13 Canadian
cents to yield 2.391 percent.
    The 5-year yield posted its highest intraday since September
2013 at 2.173 percent.
    Resales of Canadian homes dropped 14.5 percent in January
from December to the lowest monthly level in three years as
tighter mortgage rules doused demand, the Canadian Real Estate
Association said.             
    Canada added 10,700 jobs in January, driven by hiring in
construction and leisure and hospitality, according to a report
from ADP.                 

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)
  
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