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Canadian dollar

shows weakness

TORONTO: The Canadian dollar closed a bit weaker after another quiet session on Tuesday, and may break of its range to breach the C$1.3605 barrier in trading overnight, analysts said.

The unit ended slightly softer at C$1.3581 (US$0.7363) from Monday's close of C$1.3557 (US$0.7376).

It is uncertain that Germany's already low rates could sustain a cut and keep investors interested in its bonds if the economy seems stable.

On the crosses, the Canadian dollar slipped to 1.1111 marks from Monday's close of 1.1140 marks and eased to 79.59 yen from 80.01 yen.

BONDS WEAKER

Canadian bonds ended weaker on Tuesday as North American debt markets appeared to be taking a pause after recent volatile sessions.

However, analysts said the overall market mood remains negative as the US economy continues to show strength.

Canada's 9.00 percent long bond due 2025 fell C$0.22 to C$108.99 to yield 8.186 percent. The US 30-year bond was unchanged at 90.00-02/32 to yield 6.79 percent. "I would think the markets are going to have a difficult time doing much better than they are now," said David Adamo, director of fixed income research for ScotiaMcLeod Inc.

In other Canadian bonds, the 7.50 percent of 2001 slipped C$0.05 to C$99.79 to yield 7.535 percent. The 6.00 percent of 1998 eased C$0.04 to C$99.75 to yield 6.137 percent.-Reuter