CANADA FX DEBT-C$ firms against greenback on higher oil, drops vs euro
* Canadian dollar at C$1.3339, or 74.97 U.S. cents * Bond prices lower across the maturity curve TORONTO, Dec 3 (Reuters) - The Canadian dollar firmed against the greenback, helped by a rebound in crude oil prices, but fell sharply against the euro after additional easing measures from the European Central Bank were less aggressive than some investors had expected. Oil prices rose from near-2015 lows after a report sourced to a senior OPEC delegate said Saudi Arabia would next year propose a deal to balance oil markets with non-OPEC help. The European Central Bank cut its deposit rate to -0.3 percent from its existing -0.2 percent and extended its asset purchase program to run until the end of March 2017. At 9:12 a.m. EST (1412 GMT), the Canadian dollar was trading at C$1.3339 to the greenback, or 74.97 U.S. cents, slightly stronger than Wednesday's close of C$1.3349, or 74.91 U.S. cents. The currency rebounded from a nine-day low on Wednesday after the Bank of Canada used less dovish language in its policy statement than some expected. Against the euro, the Canadian dollar tumbled to C$1.4396, having touched C$1.4494, its weakest level in nearly five weeks. U.S. crude prices were up 1.10 percent to $40.38 a barrel, while Brent crude added 2.05 percent to $43.36. Canadian government bond prices were lower across the maturity curve, tracking weakness in German Bunds after the European Central Bank disappointed some investors. The two-year price down 3.5 Canadian cents to yield 0.64 percent and the benchmark 10-year falling 46 Canadian cents to yield 1.565 percent. The Canada-U.S. two-year bond spread was little changed at -32.2 basis points, while the 10-year spread was 1.3 basis points wider at -67.6 basis points. Federal Reserve Chair Janet Yellen will testify on the economic outlook before the congressional Joint Economic Committee at 10.00 a.m. EST (1500 GMT) after having said on Wednesday that she was "looking forward" to a U.S. interest rate hike. Canada's November employment report will be released on Friday and is expected to show that jobs fell 10,000 after jumping 44,400 in October, according to a Reuters poll. (Reporting by Fergal Smith; Editing by Bernadette Baum)
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