October 24, 2018 / 1:16 PM / 24 days ago

CANADA FX DEBT-C$ little changed before expected BoC rate hike

    * Canadian dollar little changed against greenback
    * Price of U.S. oil rises 0.8 percent
    * Canadian bond prices mixed across flatter yield curve

    TORONTO, Oct 24 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday, outperforming
some other major currencies ahead of an expected interest rate
hike by the Bank of Canada.    
    The central bank will announce its policy decision at 10
a.m. (1400 GMT). Chances of a rate increase have climbed to more
than 90 percent, from less than 80 percent before a deal to
revamp the North American Free Trade Agreement was reached at
the end of September.                       
    The bank, which sees Canada's economy operating near
capacity, has hiked four times since July 2017 to leave its key
policy rate at 1.50 percent.
    At 8:59 a.m. (1259 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3091 to the greenback, or 76.39
U.S. cents. The currency traded in a narrow range of 1.3070 to
1.3102.
    The loonie and the Australian dollar        were the only
G10 currencies not to lose ground against the greenback.
    The U.S. dollar        climbed against a basket of
currencies as data, showing business growth in the single
currency area lost more momentum than expected, weighed on the
euro.             
    The price of oil, one of Canada's major exports, rebounded
after hitting a two-month low the day before. The focus returned
to looming U.S. sanctions on oil exporter Iran, although concern
about a weaker demand outlook weighed.             
    U.S. crude        prices were up 0.8 percent at $66.96 a
barrel.
    Canadian government bond prices were mixed across a flatter
yield curve. The two-year            price was unchanged to
yield 2.275 percent and the 10-year             rose 10 Canadian
cents to yield 2.437 percent.
    On Tuesday, the 10-year yield hit its lowest in nearly four
weeks at 2.418 percent.         

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
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