CANADA FX DEBT-C$ strengthens vs broadly weaker greenback as oil recovers
* Canadian dollar at C$1.3039, or 76.69 U.S. cents * Bond prices lower across the maturity curve TORONTO, Aug 2 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Tuesday as oil prices recovered and as weaker-than-expected U.S. data last week weighed on the greenback. Oil rebounded after falling by up to 10 percent in one week, but investors remained concerned about oversupply weighing on prices. U.S. crude prices were up 1.72 percent at $40.75 a barrel. The U.S. dollar fell to a five-week low against a basket of major currencies. The greenback has been sold steadily since surprisingly weak U.S. second-quarter growth numbers last week. At 9:24 a.m. EDT (1324 GMT), the Canadian dollar was trading at C$1.3039 to the greenback, or 76.69 U.S. cents, stronger than Monday's Reuters close of C$1.3120, or 76.22 U.S. cents. The loonie's official close on Friday before a civic holiday on Monday was C$1.3056, OR 76.59 U.S. cents. The currency's strongest level of the session was C$1.3038, while its weakest was C$1.3143. Speculators increased bullish bets on the Canadian dollar for the fifth straight week, Commodity Futures Trading Commission data showed on Friday. Net long Canadian dollar positions rose to 23,180 contracts in the week ended July 26 from 22,068 contracts in the prior week. Canadian government bond prices were much lower across the maturity curve, with the two-year price down 6.5 Canadian cents to yield 0.573 percent and the benchmark 10-year falling 76 Canadian cents to yield 1.108 percent. On Friday, the 10-year yield hit a two-week low at 1.023 percent. Losses for global bond markets came as Japan's cabinet approved a fiscal stimulus package on Tuesday to revive the country's flagging economy. Last week, the Bank of Japan announced further easing steps which disappointed investors. Canada's international trade data for June and employment report for July are awaited on Friday. A new 15-percent property transfer tax on foreign real estate buyers in Vancouver will take effect today. (Reporting by Fergal Smith; Editing by Bernadette Baum)
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