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Canadian dollar, flat,

bonds little changed

TORONTO: The Canadian dollar closed flat in very light flows on Thursday, with the currency sidelined for another day by other foreign exchange markets.

The currency remained mired in its recent range after the US dollar failed to break resistance against the mark.

A challenge by the US dollar to the 1.5050 level against the mark would prompt a rally in the Canadian dollar through the C$1.3540 level, dealers said.

The Canadian dollar closed at C$1.3560 (US$0.7375) compared to C$1.3568 (US$0.7370). On the crosses, the Canada closed at 1.1075 against 1.1049 and at 80.02 yen compared to 79.94 yen.

BONDS STEADY

Canadian bonds closed little changed on Thursday after initially ralling on US producer price data, as a bearish outlook persisted in the market, analysts said.

"There's a lot of nervousness, that's for sure," said one Toronto-based trader. "We're firmly entrenched in a bear market, so we actually rallied following those inflation numbers but it was quickly sold."

Canada's 9.0 percent of 2025 rose C$0.05 to C$107.81 to yield 8.284 percent against the US 30-year benchmark, which rose 5/32 to US$88.09 to yield 6.93 percent.

In other prices, the 8.75 percent of 2005 rose C$0.26 to C$106.16 to yield 7.824 percent against the US 10-year which yielded 6.67 percent for a spread of 115 basis points.

At the front end, Canada's three-month cash bill traded at 5.10 percent against the US bill at 5.09 percent.-Reuter