CANADA FX DEBT-C$ strengthens ahead of Wednesday Bank of Canada rate call
* Canadian dollar at C$1.3225, or 75.61 U.S. cents * Bond prices lower across the maturity curve TORONTO, Sept 8 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Tuesday, boosted by a rising price for Brent crude and ahead of Wednesday's Bank of Canada interest rate decision. The central bank is expected to hold rates steady until 2017, although a quarter of economists polled by Reuters last week said the bank could cut for a third time this year. * At 8:59AM ET (1259 GMT), the Canadian dollar was trading at C$1.3225 to the greenback, or 75.61 U.S. cents, stronger than Bank of Canada's official close on Friday of C$1.3265, or 75.39 U.S. cents. * Trading was limited on Monday by public holidays in both Canada and the United States, but closed at C$1.3306 according to Thomson Reuters data. * U.S. crude prices were down 1.1 percent to $45.54, while Brent crude added 2.6 percent to $48.87. * The Canadian dollar, which was also outperforming the euro, the yen, and the Swiss franc, is expected to trade between C$1.3190 and C$1.3280 against the U.S. dollar on Tuesday, according to RBC Capital Markets analyst George Davis. * Canadian government bond prices were lower across the maturity curve, with the two-year price down 4 Canadian cents to yield 0.463 percent and the benchmark 10-year falling 44 Canadian cents to yield 1.486 percent. * The Canada-U.S. two-year bond spread was -27 basis points, while the 10-year spread was -70.3 basis points. (Reporting by Alastair Sharp; Editing by Frances Kerry)
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