CANADA FX DEBT-C$ strengthens as oil fall pauses, China worries Fed
* Canadian dollar at C$1.2984, or 77.02 U.S. cents * Bond prices higher across the maturity curve TORONTO, Oct 14 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Wednesday, helped by a pause in the falling crude oil price and as more bets were placed that worries about a Chinese economic slowdown will prevent a rise in U.S. interest rates this year. Consumer inflation in China eased more than expected in September, while U.S. retail sales and producer price data also disappointed, pushing the U.S. currency lower. Crude oil edged up as the United States forecast its shale production would fall sharply in November. * At 8:55 a.m. ET (1255 GMT), the Canadian dollar was trading at C$1.2984 to the greenback, or 77.02 U.S. cents, stronger than the Bank of Canada's official close of C$1.3019, or 76.81 U.S. cents. * The currency's strongest level of the session was C$1.2963, while its weakest level was C$1.3040. * Canadian government bond prices were higher across the maturity curve, with the two-year up 8 Canadian cents to yield 0.521 percent and the benchmark 10-year jumping 96 Canadian cents to yield 1.415 percent. * The Canada-U.S. two-year bond spread was -6 basis points, while the 10-year spread was -59.4 basis points. (Reporting by Alastair Sharp; Editing by Meredith Mazzilli)
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