* Bernanke signals U.S. rates to remain low * U.S. home sales drop to record low in January * C$ up at 94.99 U.S. cents * Bonds mixed across the curve (Recasts after Bernanke testimony, U.S. home sales data) By Claire Sibonney TORONTO, Feb 24 (Reuters) - The Canadian dollar perked upagainst its U.S. counterpart on Wednesday as investor appetitefor riskier assets was whetted by remarks from U.S. FederalReserve Chairman Ben Bernanke, who reaffirmed his vow to keepinterest rates low. Bernanke told Congress that a weak job market and lowinflation would likely allow the U.S. central bank to keepinterest rates at very low levels for "an extended period."[ID:nN23153536] "There"s nothing in the speech that would suggest he"sitching to tighten policy," said Sal Guatieri, a senioreconomist at BMO Capital Markets. The remarks offset dismal data that showed sales of newlybuilt U.S. single-family homes hit their lowest level sincerecords started in January 1963, hinting at possible troublesfor the fragile U.S. housing market"s recovery.[ID:nN24373288] "The tone of Bernanke"s commentary is on the dovish sidebut the new home sales numbers are a real shock, suggestingjust how fragile the U.S. housing market is," said Guatieri, He pointed out that the data was particularly gloomy giventhe extension of a popular tax credit for first-time homebuyers, which was also expanded for repeat buyers. At 11:00 a.m. (1600 GMT) the Canadian dollar was atC$1.0527 to the U.S. dollar, or 94.99 U.S. cents, up fromTuesday"s close at C$1.0566 to the U.S. dollar, or 94.64 U.S.cents. Canadian bond prices were mixed across the curve afterBernanke"s testimony sent equity markets higher. The two-year Canadian government bond CA2YT=RR was flatat C$100.335 to yield 1.331 percent, while the 10-year bondCA10YT=RR added 2 Canadian cents to C$102.520 to yield 3.430percent. (Reporting by Claire Sibonney; editing by Rob Wilson)
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