CANADA FX DEBT-C$ steady ahead of Fed rate decision
* Canadian dollar at C$1.3257, or 75.43 U.S. cents * Bond prices mostly lower across the maturity curve TORONTO, Sept 15 (Reuters) - The Canadian dollar was flat against its U.S. counterpart on Tuesday, paring earlier gains as the greenback trimmed losses following solid retail sales data, with investors reluctant to make big bets ahead of a decision on interest rates by the U.S. Federal Reserve later this week. The U.S. dollar move came after data showed that U.S. consumer spending appeared to grow at a fairly healthy pace in August, indicating robust domestic demand that could persuade the Fed to raise rates. The Fed is due to make its next rate decision Thursday and market participants on divided on whether the central bank will hike rates or delay such a move until 2016. The loonie, which was stronger against all of its counterparts on Tuesday, had firmed earlier in the session, tracking higher crude prices. * At 9:20 a.m. ET (1320 GMT), the Canadian dollar was trading at C$1.3257 to the greenback, or 75.43 U.S. cents, unchanged from the Bank of Canada's official close on Monday. * The currency was trading between C$1.3227 and C$1.3267 so far in the session. * Crude oil rose on expectations of lower U.S. inventories and production, but ongoing worries about China's growth and impact on the industry tempered gains. U.S. crude prices were up 0.52 percent to $44.23, while Brent crude added 0.43 percent to $46.57. * Canadian government bond prices were mostly lower across the maturity curve, with the two-year price down 2.5 Canadian cents to yield 0.471 percent and the benchmark 10-year falling 14 Canadian cents to yield 1.488 percent. * The Canada-U.S. two-year bond spread was -27.5 basis points, while the 10-year spread was -72.2 basis points. (Reporting by Solarina Ho; Editing by Bernadette Baum)
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