* C$ falls to C$1.0282, or 97.26 U.S. cents
* Bond prices higher across the curve
By Claire Sibonney
TORONTO, June 16 (Reuters) - The Canadian dollar slipped against its U.S. counterpart on Wednesday, when euro zone debt worries resurfaced as the European Commission denied a report that the European Union, the IMF and the U.S. Treasury were drawing up a liquidity plan for Spain.
The newspaper report, citing plans for a credit line of up to 250 billion euros ($335 billion) for Spain came a day after successful European debt auctions encouraged fresh risk-taking in financial markets. [ID:nLDE65F0GX]
The premium investors demand to hold 10-year Spanish government bonds widened to a euro lifetime high of 220 basis points as investors grew nervous about Spain's credit markets.
"Equities are turning lower into the open, commodities are lower and the concern over the European bond market is rising, so I think all in all we have Canada starting the day off on a weaker footing," said Camilla Sutton, currency strategist at Scotia Capital.
At 8:00 a.m. (1200 GMT), the Canadian dollar CAD=D4 was at C$1.0282 to the U.S. dollar, or 97.26 U.S. cents, down from C$1.0251, or 97.55 U.S. cents, at Tuesday's close.
Sutton said she was eyeing a technical resistance level around C$1.03. "(It) seems to have held in fairly well and there's been a lot of congestion around there over the last few sessions," she said.
On the support side, she pointed to a recent high of C$1.0225.
Investors will also be watching for clues on the Bank of Canada's July 20 interest rate decision later in the day when Governor Mark Carney delivers a speech and speaks to media in Charlottetown.
Canadian bond prices edged higher across the curve, tracking U.S. Treasuries which benefitted from modest safe-haven flows.
The two-year government bond CA2YT=RR was up 2 Canadian cents to yield 1.819 percent, while the 10-year bond CA10YT=RR jumped 20 Canadian cents to yield 3.404 percent. (Reporting by Claire Sibonney; Editing by Chizu Nomiyama)