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Canadian dollar,

bonds flat

in quiet trade

TORONTO: The Canadian dollar closed flat after a quiet day, with the currency held back from gains on bullish sentiment toward the US dollar by fears of another rate cut by the Bank of Canada.

Dealers said the unit traded in a tight range, on hold ahead of economic data, including the consumer price index on Tuesday and retail sales data on Wednesday.

If retail sales remain weak, dealers said it could prompt the Bank of Canada to cut rates again following last week's ease. The target range for the central bank's overnight lending rate is now 4.5 percent to 5.0 percent.

The Canadian dollar close virtually unchanged at C$1.3628 (US$0.7338). On the crosses, the unit gained to 1.1132 marks compared to 1.1097 on Friday and rose to 78.29 yen from 78.77 yen.

BONDS FALL

Canadian bonds closed nearly flat on Monday after a morning of bullish action was checked by higher-than-expected commodity prices, analysts said.

"The price rally continued on until about noon until it ran into a bit of resistance," said Laketon Investment Management Bonds portfolio manager Joe Lee. The daily Knight Ridder-Commodity Research Bureau index of commodity futures surged to new eight-year highs, led by grains and beans.

Canada's 9.00 percent bond due 2025 rose C$0.12 to C$108.65 to yield 8.213 percent while the US 30-year bond jumped 17/32 to yield 6.74 percent.

The spread between the Canadian and US benchmark bonds totalled 147 basis points, slightly up from 144 basis points at Friday's close.-Reuter