Oil Rebound Helps Halt Decline in Canadian Consumer Sentiment

Stronger oil prices and brighter prospects for a Nafta deal have put the brakes on a three-month slide in Canadian consumer confidence.

Prices for oil -- a key Canadian export -- jumped to their highest in three years this month, helping the Canadian dollar rebound from its recent slump. Also bolstering confidence have been the steady progress toward a renewed North American Free Trade Agreement, signals from the Bank of Canada it’s in no rush to raise interest rates further and indications the country’s biggest housing markets are stabilizing.

“Many Canadians are transfixed by both the Nafta talks and the price of oil,” said Nik Nanos, chairman of Nanos Research Group. “Consumer confidence has followed a roller coaster ride along both of those fronts.”

The Bloomberg Nanos Canadian Confidence Index -- a composite gauge based on telephone surveys -- recorded its first monthly gain of 2018 in April, after falling to the worst reading in more than a year in March. While sentiment remains below average, the data suggest the unease households reported to start the year is at the very least not deepening.

Consumer confidence suffered a sharp drop off between January and March from near record highs at the end of last year as the nation’s economy was battered by headwinds including higher interest rates and concern about the housing market. It was one of the largest reversals for the confidence index since Nanos began weekly tracking in 2013, and came as a surprise given the strength of the nation’s labor market over the past year.

Yet, despite strong job gains, the economy has entered a slow patch. The Bank of Canada estimated growth in the first quarter was 1.3 percent, the slowest since 2016 and the third-straight quarter of sub-2 percent growth.

Most economists expect the economy to return to above-2 percent growth for the rest of the year, a process that should be helped by higher income from rising energy prices and a pick up in investment.

Oil prices in April surged to levels last seen in 2014 and is up almost 10 percent over the past two months, while negotiations to come up with a Nafta deal -- which have been a drag on business spending plans -- are intensifying and an agreement in principle could be reached as early as next month.

The Bloomberg Nanos Canadian Confidence Index is based on a four-week rolling average of 1,000 telephone responses to questions about personal finances, job security, the outlook for the economy and real estate prices. The survey has a margin of error of 3.1 percentage points.

The index ended April at 57.9, up from 56.8 in March but still below the average of the past 12 months. It touched 62.2 at the end of December, close to a record. When compared to year-earlier levels, the index has declined for three straight months -- something that hasn’t happened since early 2016.

Yet, sentiment appears to be stabilizing. The percentage of Canadians giving the most pessimistic responses fell to 18 percent, down from 19.1 percent in March. While still up from 14.2 percent at the end of 2017, it’s closer to historical averages. The share of Canadians giving the most optimistic responses was up slightly to 32.5 percent, from 32 percent in March. It reached a record 37.4 percent in December.

Regionally, Alberta and other prairie provinces recorded the biggest increases in sentiment, reflecting the improved outlook for oil. Quebec continues to post the highest confidence levels in the country.

SOURCE: BLOOMBERG

Canadian dollar recovers from three-week low, slips 0.4 percent for week

TORONTO (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday but still declined 0.4 percent for the week as recent comments from the Bank of Canada weighed on the currency and higher U.S. Treasury yields boosted the greenback.

At 4 p.m. EDT (2000 GMT), the Canadian dollar was trading 0.3 percent higher at C$1.2831 to the greenback, or 77.94 U.S. cents. It touched its weakest since April 3 at C$1.2900.

“We had over the last few days some dovish statements coming out of the Bank of Canada,” said Hosen Marjaee, senior managing director, Canadian fixed income at Manulife Asset Management.

“They became a bit more concerned about the strength of the Canadian economy, so that took away some expected rate hikes out of the curve and that pushed the Canadian dollar weaker.”

The loonie has declined more than two percent since the Bank of Canada last week held its benchmark interest rate steady at 1.25 percent and said it did not know when or how aggressive it would need to be to keep inflation in check.

The central bank has worried about uncertainties that could hurt the economy, including a shift toward protectionist global trade policies.

Negotiators trying to hammer out a quick deal to revamp the North American Free Trade Agreement said they will take a break until May 7, allowing time for consultations with the auto industry in Mexico and for U.S. Trade Representative Robert Lighthizer to visit China.

Speculators have trimmed bearish bets on the Canadian dollar for the third straight week, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed. As of April 24, net short positions had fallen to 25,144 contracts from 30,324 a week earlier.

U.S. crude oil futures settled 0.1 percent lower at $68.10 a barrel. Oil is one of Canada’s major exports.

The U.S. dollar held steady despite a government report showing slower U.S. first-quarter economic growth, with the currency on track to end its strongest week since November 2016.

 

Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries as investors worried about the strength of the global economy.

The two-year rose 3.5 Canadian cents to yield 1.896 percent and the 10-year climbed 27 Canadian cents to yield 2.321 percent.

Reporting by Fergal Smith; editing by Jonathan Oatis and James Dalgleish

SOURCE: REUTERS

TransCanada profit beats, Keystone running near normal throughput

(Reuters) - TransCanada Corp (TRP.TO) on Friday beat profit estimates and said it does not expect major changes in throughput on its Keystone pipeline once pressure restrictions related to a leak in South Dakota are removed.

Net income rose to C$734 million, or 83 Canadian cents per share, in the first quarter from C$643 million, or 74 Canadian cents per share, for the same period in 2017. (bit.ly/2r4qjZn)

Excluding items, TransCanada earned 98 Canadian cents per share, beating analysts’ average estimate by 14 cents, according to Thomson Reuters I/B/E/S.

Pressure has been restricted on the 590,000 barrel per day Keystone pipeline since late last year, after the line leaked some 9,700 barrels of oil in South Dakota.

The restrictions “really did have a minor impact on our throughput and so consequently, I don’t anticipate seeing a tremendous increase in our throughput once it’s lifted, based on some of the changes we’ve made already,” said TransCanada’s head of liquids Paul Miller on a conference call.

Miller also said the company was continuing to work towards starting construction on the Keystone XL expansion in 2019 and that $8 billion remains “a good number” for capital costs.

The long-delayed Keystone XL project has pitted environmentalists, who worry about spills, against industry, who say the project will shore up discounted Canadian oil prices and attract investment to Canada’s energy sector.

The company also said the LNG Canada liquefied natural gas export project was looking positive following news the company had selected a contractor to lead construction.

TransCanada, which is building the pipeline that would connects the export terminal to Canadian gas fields, said the bulk of its capital spending will be in 2021 and 2022, assuming the project goes ahead.

The company expects to invest C$21 billion in the near term, down from the C$23 billion it had earmarked earlier.

TransCanada said earnings from its oil pipelines, of which Keystone is the biggest contributor, rose 50 percent to C$341 million ($264.90 million) in the first quarter .

TransCanada said earnings from its Canadian natural gas pipelines fell 10.2 percent to C$253 million in the reported quarter.

Revenue rose marginally to C$3.42 billion from C$3.41 billion.

Reporting by Yashaswini Swamynathan and Anirban Paul in Bengaluru and Julie Gordon in Toronto; Editing by Saumyadeb Chakrabarty and Cynthia Osterman

SOURCE: REUTERS

 

CANADA FX DEBT-C$ hits 11-day low as rate hike bets slip on inflation miss

* Canadian dollar at C$1.2756, or 78.39 U.S. cents
* Loonie touches its weakest since April 9 at C$1.2756
* Currency falls 1.1 percent for the week
* Bond prices mixed across steeper yield curve
By Fergal Smith
TORONTO, April 20 (Reuters) - The Canadian dollar weakened to an 11-day low against its U.S. counterpart on Friday after data showing domestic inflation rose at a slower-than-forecast pace further reduced expectations for an interest rate hike next month from the Bank of Canada. Canada's annual inflation rate in March edged up to 2.3 percent from 2.2 percent in February, the highest level in more than three years, Statistics Canada said. Analysts had forecast a 2.4 percent annual inflation rise. The increase was "a little less than expected, so the currency sold off on that," said Hosen Marjaee, senior managing director, Canadian fixed income at Manulife Asset Management. The data indicated that the Bank of Canada can raise interest rates at a slightly slower pace, Marjaee said. The Bank of Canada left its benchmark interest rate on hold at 1.25 percent on Wednesday and said it did not know when or how aggressive it would need to be to keep inflation in check. Chances of an interest rate hike in May have fallen to 27 percent from about 40 percent before the rate announcement . In separate data, Canadian retail sales grew by 0.4 percent in February. At 4 p.m. EDT (2000 GMT), the Canadian dollar was trading 0.7 percent lower at C$1.2756 to the greenback, or 78.39 U.S. cents, its weakest level since April 9. For the week, the loonie fell 1.1 percent. Declines for the loonie came even as Canada and Mexico said good progress had been made in talks with the United States to modernize the North American Free Trade Agreement (NAFTA). Canada's trade dependent economy could benefit if a NAFTA deal is reached. Speculators have trimmed bearish bets on the Canadian dollar for the second straight week, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed. As of April 17, net short positions had fallen to 30,324 contracts from 31,672 a week earlier. The price of oil, one of Canada's major exports, recovered after an earlier slide driven by U.S. President Donald Trump's criticism of OPEC's role in pushing up global oil prices. U.S. crude oil futures settled 0.1 percent higher at $68.38 a barrel. Canadian government bond prices were mixed across a steeper yield curve, with the 10-year falling 10 Canadian cents to yield 2.333 percent. The gap between Canada's 10-year yield and its U.S. counterpart widened by 2.6 basis points to a spread of -62.0 basis points. (Reporting by Fergal Smith, editing by G Crosse)

SOURCE: REUTERS

Vermilion to Buy Spartan Energy for $860 Million in Stock

  • Deal comes amid pipeline bottlenecks, low domestic oil prices
  • ‘The company clearly sees good value in Canada’ analyst says

    Vermilion Energy Inc. agreed to buy Spartan Energy Corp. for about C$1.08 billion ($860 million) in stock, adding to its production and acreage in southeast Saskatchewan in the largest oil and gas company takeover in Canada this year.

    Spartan holders will get 0.1476 of a Vermilion share for each Spartan share, Vermilion said in statement Monday. That represents a premium of 5 percent, based on Friday’s closing prices. Vermilion also will assume about C$175 million of debt. The company expects the transaction to close on or about June 15.
     
    The deal is the latest in a series of moves by Vermilion to boost its position in Saskatchewan, an area the company prefers for profitability and a favorable regulatory environment as Canadian oil companies struggle with pipeline bottlenecks and prices that have trailed the global rebound. Vermilion entered the region in 2014 with the purchase of Elkhorn Resources Inc. and added acreage there in 2017 and 2018.
     
    "At first glance this looks like a very good deal for Vermilion,” Dave Popowich, an analyst at CIBC World Markets said in a note to clients. “We have seen Vermilion as a natural acquirer of assets in the ongoing industry downturn, and the company clearly sees good value in Canada at current asset prices.”

    Energy Deals

    Vermilion’s takeover of Spartan comes amid a moribund environment for deals in Canada’s energy patch, with the value of mergers and acquisitions falling to $5.2 billion through April 16 from $34.2 billion for the same period last year.

    Investors have shied from Canadian oil stocks with pipeline and political frustrations reaching new heights, while analysts see the potential for deals providing a potential catalyst. “While the equity markets may penalize acquirers in the short-term, we think well-priced acquisitions of quality assets can generate significant value for shareholders over time,” BMO Capital Markets told clients earlier this month.

    Canada’s S&P/TSX Composite Energy index has slumped 10 percent over the past 12 months compared with a gain of 4.3 percent for their U.S. peers, though Western Canadian Select, a benchmark for oil sands producers, has rebounded recently to trade $15 below WTI futures, the smallest gap since November.

    Pipeline Politics

    Canadian pipeline politics have grabbed global attention as Kinder Morgan Inc. seeks to push its Trans Mountain pipeline project ahead amid objections from the province of British Columbia. Unable to dissuade British Columbia in its fight against the C$7.4 billion pipeline which exits on the west coast, Prime Minister Justin Trudeau has said his government will start talks with Kinder to backstop the pipeline.

    Spartan has annual production of about 23,000 barrels and covers about 480,000 acres, according to the statement. The output is 91 percent oil.

    As a result of the deal, Vermilion raised its 2018 production forecast to a range of 86,000 barrels of oil equivalent per day to 90,000 a day, up from 75,000 to 77,500 a day. It raised the capital budget about 32 percent to C$430 million from C$325 million.

    TD Securities Inc. acted as Spartan’s financial adviser, while GMP FirstEnergy and Peters & Co. Limited are acting as strategic advisers to Spartan. No adviser was listed for Vermilion.

    — With assistance by Scott Deveau

    SOURCE: BLOOMBERG

Alberta seeks to cut oil to British Columbia in Canada pipeline row

VANCOUVER (Reuters) - Alberta officials will introduce legislation on Monday expected to give the provincial government power to cut oil shipments to neighboring British Columbia in an escalation of a row over the stalled expansion of a Kinder Morgan Canada pipeline, which the Pacific province opposes.

The Trans Mountain expansion issue has pitted Ottawa against British Columbia (B.C.). It could turn into a constitutional crisis, derail Prime Minister Justin Trudeau’s energy strategy and dent business confidence. [L1N1RQ1DW]

Alberta’s legislation, slated for Monday afternoon, could make gasoline more expensive in British Columbia and comes a day after an emergency summit to unlock the stalemate failed. On Sunday, Trudeau pledged financial aid to the C$7.4 billion ($5.9 billion) project, reiterating Ottawa has jurisdiction over it and it will be built.

But shortly after the summit ended, B.C. Premier John Horgan tweeted: “I will continue to fight to defend B.C. jobs, our economy and environment – now, and for future generations.”

Horgan campaigned on a pledge to block the expansion, which would nearly triple capacity on the existing pipeline from Alberta to B.C.’s coast.

Trudeau said his government would draft legislation, which is unlikely to come for several weeks, to reaffirm federal jurisdiction over the issue.

The legislation and financial aid have the same aim “of making sure that one, that this pipeline will be built and two, that all of the investors involved know that we take this seriously and they can be confident it will go through,” said a source close to the government.

Kinder Morgan Canada’s shares rose in early trading and then dipped to C$17.17 on the Toronto Stock Exchange, down 8 Canadian cents. The energy sector as a whole was also slightly down as oil prices slipped. [.TO]

Twenty-eight Kinder Morgan pipeline protesters who have been arrested for civil contempt at the company’s Burnaby Mountain facilities were due to appear in court on Monday.

More than 170 people, including federal Green Party leader Elizabeth May, have been arrested since mid-March for violating a civil injunction obtained by Kinder Morgan.

“We continue to regard the calculus as fraught, and believe the failure to resolve legal challenges make the actual construction of (the Trans Mountain expansion)difficult – even with federal government intervention,” Credit Suisse analysts said in a research note on Monday.

Oil producers and the Alberta government are desperate for the pipeline to go ahead, as rising production has outstripped existing pipeline capacity, leading to a widening of the normal differential between Western Canadian oil prices and the U.S. benchmark.

 

($1 = 1.2576 Canadian dollars)

Additional reporting by Andrea Hopkins in Ottawa; Editing by David Gregorio

SOURCE: REUTERS CANADA

Oil steady, near three-year highs on Syria tensions, tighter supply

NEW YORK (Reuters) - Oil prices held steady on Thursday, remaining close to highs last reached in late 2014 on tensions over Syria and shrinking global oil inventories.

Brent crude futures settled at $72.02 a barrel, down 4 cents. U.S. WTI crude futures were up 25 cents at $67.07. Prices for both climbed in post-settlement trading.

“We’re pretty much holding steady on yesterday’s gains ... and it does look like there’s further upside ahead,” said Walter Zimmerman, chief technical analyst at United-ICAP. “People are still nervous about what’s going to happen in Syria ... nothing was solved overnight.”

Oil prices jumped on Wednesday to their highest level since late 2014 after Saudi Arabia said it intercepted missiles over Riyadh and U.S. President Donald Trump warned of military action in Syria, both of which raised concerns about possible supply disruptions.

Some fundamental signals also supported prices. The Organization of the Petroleum Exporting Countries said the global oil stocks surplus was close to evaporating due to healthy demand and its own supply cuts.

 

The group is producing oil below its targets, meaning the world needs to use stocks to meet rising demand. OPEC said in its monthly report oil stocks in the developed world fell by 17.4 million barrels in February to 2.854 billion barrels, around 43 million barrels above the latest five-year average.

OPEC Secretary-General Mohammad Barkindo told Reuters in New Delhi the global oil glut had effectively shrunk by nine-tenths since the start of 2017.

“We have seen an accelerated shrinkage of stocks in storage from unparalleled highs of about 400 million barrels to about 43 million above the five-year average,” Barkindo said.

OPEC, Russia and several other non-OPEC producers began trimming supply in January 2017. Their pact runs until the end of the year and OPEC meets in June to decide on its next course of action.

“There is growing confidence that the declaration of cooperation will be extended beyond 2018,” Barkindo told Reuters. “Russia will continue to play a leading role.”

These bullish factors more than offset pressure from a U.S. government report showing crude oil inventories rose by 3.3 million barrels, while production hit a record 10.53 million barrels per day (bpd).

Still, analysts were waiting for further fundamental signals. “This all depends on whether demand will be as strong as it is projected to be,” said Gene McGillian, manager of market research at Tradition in Stamford.

SOURCE: REUTERS

CANADA FX DEBT-C$ posts seven-week high as oil rallies on Syria tensions

(Adds strategist quotes, details throughout on market activity; updates prices) * Canadian dollar at C$1.2571, or 79.55 U.S. cents * Loonie touches its strongest since Feb. 19 at C$1.2545 * Price of U.S. crude oil rises 2 percent * Bond prices fall across the yield curve By Fergal Smith TORONTO, April 11 (Reuters) - The Canadian dollar strengthened to a seven-week high against its U.S. counterpart on Wednesday as rising geopolitical tensions boosted the price of oil to its highest level in more than three years. Oil, one of Canada's major exports, climbed after Saudi Arabia said it intercepted missiles over Riyadh and U.S. President Donald Trump warned Russia of imminent military action in Syria. U.S. crude oil futures settled 2 percent higher at $66.82 a barrel. "It all adds up to a pretty positive picture on the loonie," said Ranko Berich, head of market analysis at Monex Canada and Monex Europe. In addition to higher oil prices, the potential for further Bank of Canada interest rate hikes later this year has also been supportive of the loonie, Berich said. The central bank has raised its benchmark interest rate three times since July to 1.25 percent. Money markets see two more rate hikes this year. At 4 p.m. EDT (2000 GMT), the Canadian dollar was trading 0.2 percent higher at C$1.2571 to the greenback, or 79.55 U.S. cents. The currency, which has benefited recently from increased optimism over a deal to revamp the North American Free Trade Agreement, touched its strongest level since Feb. 19 at C$1.2545. Gains for the loonie have come after data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday that speculators have raised bearish bets on the currency to the highest since July. "Looking at the price action it's quite possible some of those shorts got shaken out pretty quickly," Berich said. Canadian government bond prices were lower across the yield curve, with the two-year down 10 Canadian cents to yield 1.853 percent and the 10-year falling 46 Canadian cents to yield 2.201 percent. The gap between the 10-year yield and its U.S. equivalent narrowed by 8.1 basis points to a spread of -57.5 basis points, its narrowest since Feb. 20, as Treasuries were boosted by demand for safe-haven assets. (Reporting by Fergal Smith; Editing by Sandra Maler)

SOURCE: REUTERS

Trans Mountain or Not, Alberta Has Some Oil Shipping Alternatives

  • Enbridge, TransCanada lines could open 1 million barrels a day
  • Producers may turn to rail or invest in new technologies

If Kinder Morgan Canada Ltd. decides to shelve its now-stalled Trans Mountain pipeline expansion project, oil sands producers will have to get creative about moving their crude.

The line would open up 590,000 barrels a day of new capacity to Vancouver. Without it, producers are left with two main alternatives: TransCanada Corp.’s Keystone XL pipeline and Enbridge Inc.’s Line 3 expansion to Superior, Wisconsin. Neither is a silver bullet for Canada’s growing supply glut. 

The two projects would allow Canada to export more than a million additional barrels a day combined, which is “plenty of new capacity for growth” through 2023, according Mike Walls, a Genscape Inc. analyst. But production growth could surpass pipeline capacity again by the mid 2020s, according to Canadian Association of Petroleum Producers’ projections. And, unlike Trans Mountain, neither line offers access to coveted Asian markets

Here are a few other possibilities producers might want to consider:

 

Rail Revolution

Uncertainty surrounding the fate of Trans Mountain may encourage Canadian oil producers to sign long-term commitments to ship crude by rail, Kevin Birn, a director at IHS Energy in Calgary, said by phone. That could reduce inventories and improve the price.

The pipeline bottleneck that emerged late last year sent Canadian heavy oil prices to their lowest level in more than four years, relative to WTI futures. Prices improved somewhat as train shipments rose but rail companies including Canadian National Railway Co. and Canadian Pacific Railway Ltd. have expressed a reluctance to add crude-by-rail capacity until oil companies commit to shipping set volumes for the long term.

Get More Efficient

Enbridge, operator of the biggest oil export pipeline network in Canada, said last year that it could add 500,000 barrels a day over several years to its pipeline system with “low cost” expansions that require “minimal permitting.”

The company already seeks to add 175,000 barrels a day to its Mainline system by next year by using drag-reducing additives and replacing North Dakota barrels with Canadian crude. Further capacity expansions could be achieved through upgrading machinery and restoring full capacity to its Line 4.

Innovation

New technologies are emerging that could make transporting crude easier. Last month, Alberta’s government pledged C$1 billion to support the construction of partial upgraders that would lighten oil-sands bitumen just enough so it flows through pipelines without adding diluent. Diluent, typically light condensate or synthetic crude, currently must be added to bitumen and accounts for about a third of the volumes that are shipped. 

Another new idea: Turn bitumen into solid pellets so it can be transported via ordinary rail cars and shipped on vessels. The rail company Canadian National announced in December that Calgary-based Toyo Engineering Canada Ltd. has been selected to design and build a pilot project to produce the so-called CanaPuxTM pellets. Such a solution may allow producers to get around a ban on tankers in the waters of northern British Columbia and ship crude out of the port of Kitimat, avoiding Vancouver.

Other Pipeline Options

Enbridge’s acquisition of Spectra Energy Corp. last year gave the company control of the Express Pipeline, a 280,000 barrel a day line running from Hardisty, Alberta, to Casper, Wyoming, where it connects with the Platte pipeline that runs to Wood River, Illinois. Expansion of the Express line is one of the “potential commercial synergies” the company is considering. Another possibility is reversing the Southern Lights pipeline that currently transports light diluent from Illinois to Alberta.

CANADA FX DEBT-C$ posts 6-week high on business optimism, oil rally

* Canadian dollar at C$1.2710, or 78.68 U.S. cents
* Loonie touches strongest since Feb. 27 at C$1.2687
* Oil price rises 2.2 percent
* Bond prices mixed across the yield curve
By Fergal Smith TORONTO, April 9 (Reuters) - The Canadian dollar strengthened to a nearly six-week high against its U.S. counterpart on Monday, boosted by higher oil prices and a business survey from the Bank of Canada that supported expectations for further interest rate hikes. Canadian companies remain optimistic about sales growth despite trade uncertainties, the central bank said in the first-quarter report. The Bank of Canada has raised interest rates three times since July. Chances of another hike by July edged up to nearly 80 percent from 72 percent before the report, the overnight index swaps market indicated. "The business outlook survey was fairly friendly to the Canadian dollar," said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets. "The other piece of the puzzle is oil prices ... and the recovery in the WCS (Western Canadian Select) spot price continues." The price of oil, one of Canada's major exports, was supported by a rebound in the stock market as concerns of a trade war between the United States and China eased. U.S. crude oil futures settled 2.2 percent higher at $63.42 a barrel. Canadian crude tends to trade at a discount to U.S. crude, due, in part, to supply constraints. But the gap has plunged by more than $13 since March, data from Shorcan Energy showed. Business groups and local officials called for Canada's government to guarantee that an expansion of the Trans Mountain pipeline is completed, after operator Kinder Morgan Canada halted most work on the C$7.4 billion project. At 4 p.m. (2000 GMT), the Canadian dollar was trading 0.6 percent higher at C$1.2710 to the greenback, or 78.68 U.S. cents. The currency touched its strongest level since Feb. 27 at C$1.2687. Last week, stronger-than-expected domestic jobs data and upbeat comments by officials from the United States, Mexico and Canada about the chances of a deal soon to revamp the North American Free Trade Agreement helped boost the loonie by 0.9 percent. Canada sends 75 percent of its exports to the United States. Still, talks to rework NAFTA are not advanced enough for the three countries to announce a deal "in principle" at this month's Summit of the Americas in Lima, according to two people familiar with the matter. Canadian government bond prices were mixed across the yield curve, with the two-year down 0.5 Canadian cent to yield 1.794 percent and the 10-year rising 3 Canadian cents to yield 2.14 percent. (Reporting by Fergal Smith; Editing by Nick Zieminski and Peter Cooney)

SOURCE: REUTERS

DiscoverWeyburn.com is Weyburn's only source for community news and information such as weather and classifieds.

Login