CANADA FX DEBT-C$ softens ahead of Bank of Canada rate decision
* Canadian dollar at C$1.3215, or 75.67 U.S. cents * Bond prices mixed across the maturity curve TORONTO, Sept 9 (Reuters) - The Canadian dollar eased against its U.S. counterpart on Wednesday as investors positioned themselves ahead of the Bank of Canada's latest interest rate decision. A Reuters poll last week found that forecasters pegged the probability of another 25 basis point cut at one-in-four, with the median forecast from 40 economists showing the central bank as keeping rates on hold. Recent data that showed some improvements in the Canadian economy has helped underpin expectations that rates will stay the same, but extremely volatile crude oil prices and global markets are seen keeping the Bank of Canada's outlook cautious. The Bank of Canada's rate decision is due at 10:00 a.m. EDT (1400 GMT). * At 9:23 a.m. EDT (1323 GMT), the Canadian dollar was trading at C$1.3215 to the greenback, or 75.67 U.S. cents, weaker than the Bank of Canada's official close of C$1.3205, or 75.73 U.S. cents on Tuesday. * The loonie has traded between C$1.3177 and C$1.3262 so far. * The Canadian dollar, which was weaker against a number of its key currency counterparts, is expected to trade between C$1.3200 and C$1.3300 against the U.S. dollar during the North American session on Wednesday, according to Royal Bank of Canada. * Canadian government bond prices were mixed across the maturity curve, with the longer-term prices lower. The two-year price was flat, yielding 0.433 percent, and the benchmark 10-year fell 20 Canadian cents to yield 1.492 percent. * The Canada-U.S. two-year bond spread widened to -32.8 basis points, while the 10-year spread widened to -75.7 basis points. (Reporting by Solarina Ho; Editing by Lisa Von Ahn)
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