CANADA FX DEBT-C$ near two-week low despite higher oil prices, yields
* Canadian dollar at C$1.3438, or 74.42 U.S. cents * Bond prices fall across maturity curve TORONTO, April 19 (Reuters) - The Canadian dollar extended losses against its U.S. counterpart on Wednesday, hitting its weakest level in almost two weeks even as oil prices steadied and bond yields rose. At 9:13 a.m. EDT (1313 GMT), the Canadian dollar was trading at C$1.3438 to the greenback, or 74.42 U.S. cents, weaker than the Bank of Canada's official Tuesday close of C$1.3381, or 74.73 U.S. cents. "The recent support provided by both of CAD's key drivers appears to be eroding amid signs of a broader turn in oil prices and an apparent halt in the recent (CAD-supportive) narrowing in yield spreads," Scotiabank strategists wrote in a note. The currency's strongest level of the session was C$1.3376, while its weakest level was C$1.3443. Oil edged higher on Wednesday as OPEC said it was committed to eroding a global surplus of crude, but increasing shale production in the United States and still-high global stocks threatened to pull prices lower. The Canadian dollar was underperforming a string of European currencies but recovered some recent losses against the Japanese yen. Canadian government bond prices were lower across the maturity curve, with the price of the two-year down 2 Canadian cents to yield 0.709 percent and the benchmark 10-year falling 25 Canadian cents to yield 1.459 percent. The Canada-U.S. two-year bond spread was -47.6 basis points, while the 10-year spread was -74.6 basis points. (Reporting by Alastair Sharp; Editing by Paul Simao)
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