CANADA FX DEBT-C$ little changed on euro, equities
*C$ little changed at C$0.9919 vs US$ or $1.0082
*Bonds prices slip as risk appetite recovers
By Claire Sibonney
TORONTO, Sept 13 (Reuters) - The Canadian dollar held above parity against the U.S. dollar on Tuesday but was little changed from the previous session's close in see-saw trading that tracked volatile European markets.
Investors continued to worry that European policymakers had no plan to stem the region's debt crisis as speculation that China would support Italy by buying its government debt proved to be short-lived.
However, sentiment seemed to be shifting to more positive territory after the sharp global selloff on Monday, when markets feared Greece was on the tipping point of default.
"There's a little bit of buoyancy going on here as we're seeing an uplift in the euro," said C.J. Gavsie, managing director of foreign exchange sales at BMO Capital Markets.
"It's a bit of the same story playing out, we tend to get very heightened concern, particularly yesterday morning (when) Greece was definitely at the forefront of the situation ... but until we actually see some sort of follow-through of what the market is potentially anticipating here we're not seeing the prices really move."
At 8:28 a.m. (1228 GMT), the Canadian dollar stood at C$0.9919 to the U.S. dollar, or $1.0082 U.S. cents, just one tick stronger than Monday's North American session close at $0.9920 to the U.S. dollar, or C$1.0081.
Gavsie noted there was near-term Canadian-dollar resistance around C$0.9880 and support in the C$0.9965-75 area.
On Monday the Canadian dollar broke below parity for the first time in over a month to touch its weakest level since January.
Canadian bond prices on Tuesday drifted lower as risk appetite recovered somewhat.
The two-year bond CA2YT=RR was down 6 Canadian cents to yield 0.906 percent, while the 10-year bond CA10YT=RR lost 20 Canadian cents to yield 2.165 percent. (Reporting by Claire Sibonney; Editing by Theodore d'Afflisio)
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