CANADA FX DEBT-C$ pulls back from earlier 6-day high as oil dips
* Canadian dollar at C$1.3471, or 74.23 U.S. cents * Loonie touches its strongest since May 31 at C$1.3444 * Bond prices higher across the yield curve * 10-yr yield touches a nearly 7-month low at 1.373 pct TORONTO, June 6 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday, pulling back from an earlier six-day high as oil prices fell and investors braced for key events later in the week. Prices of oil, one of Canada's major exports, retreated on concerns that a diplomatic rift between Qatar and several Arab states including Saudi Arabia could undermine efforts by the Organization of the Petroleum Exporting Countries to tighten the market. U.S. crude prices were down 0.27 percent at $47.27 a barrel. The Bank of Canada on Thursday will release its review of developments in the financial system, followed by a news conference with Governor Stephen Poloz. Investors will weigh his assessment of the health of the housing and mortgage markets in light of recent troubles at nonbank lender Home Capital Group Inc . A European Central Bank meeting, a parliamentary election in the UK and testimony by James Comey, former director of the U.S. Federal Bureau of Investigation, to a Senate committee are also due on Thursday, while Canada's employment report for May is due on Friday. At 9:08 a.m. ET (1308 GMT), the Canadian dollar was trading at C$1.3471 to the greenback, or 74.23 U.S. cents, nearly unchanged. The currency's weakest level of the session was C$1.3485, while it touched its strongest since May 31 at C$1.3444. The United States has asked Canada to eliminate a new "underhanded" dairy-pricing class that has undercut sales by U.S. dairies to Canadian processors, U.S. Agriculture Secretary Sonny Perdue said on Monday. Perdue's comments come as the United States has signaled it wants to renegotiate the North American Free Trade Agreement with Canada and Mexico. U.S. Treasury yields and the U.S. dollar dropped to seven-month lows and world stocks slid as political uncertainty from the United States to the Middle East and weakness in commodity markets pushed investors away from risky assets. Canadian government bond prices were higher across a flatter yield curve in sympathy with Treasuries. The two-year rose 1 Canadian cent to yield 0.71 percent and the 10-year climbed 18 Canadian cents to yield 1.393 percent. The 10-year yield touched its lowest intraday since Nov. 10 at 1.373 percent. (Reporting by Fergal Smith; Editing by Jeffrey Benkoe)
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