950818

Bonds flat,

dollar lower

in Toronto

TORONTO: Canadian bonds settled flat after testing both sides of unchanged dealers said on Thursday.

"Things are very thin and all the price moves were exaggerated," one analyst said.

Canada's 9.0 percent of 2025 was up C$0.06 at 102.74 to yield 8.738 percent against the US 30-year at 6.90 percent for a spread of 184 basis points, barely changed from 184 basis points at the close Wednesday.

Analysts said conflicting factors played in the market, pushing prices in both directions.

Analysts said the market is unlikely to move sharply in either direction before the referendum issue is resolved. They said, however, that the Bank of Canada is still likely to ease interest rates by another 25 basis points before the referendum.

Among other prices, the 9.0 percent of 2004 was up C$0.08 at 104.19 to yield 8.339 percent against the US 10-year at 6.57 percent for a spread of 177 basis points.

At the front end, Canada's three-month cash T-bill closed at 6.47 percent against the US three-month at 5.61 percent.

DOLLAR

The Canadian dollar closed weaker and is seen trading within the same range overnight, pressured by worries about increasing political uncertainty, dealers said.

It closed weaker at C$1.3603 (US$0.7351) from Wednesday's close of C$1.3585 (US$0.7361) in slow trading.

Interest in the unit has been constrained by concerns about how Quebec residents will vote in an autumn referendum on separating from Canada, said Technical Data senior Canadian market analyst Jerrmy Ficchi. "There hasn't been much interest to buy it because of he Quebec referendum.

On the crosses, the Canadian dollar fell to 1.0836 marks from 1.0911 marks and weakened to 71.43 yen from 72.12 yen.-Reuter