CANADA FX DEBT-C$ steady but pressured by U.S. inflation data
* Canadian dollar at C$1.0736 or 93.14 U.S. cents * Bond prices mixed, 10-year yield around 1-year low By Leah Schnurr TORONTO, July 22 (Reuters) - The Canadian dollar was little changed against the greenback on Tuesday as a rise in U.S. inflation put pressure on the loonie, offsetting the re-emergence of risk appetite in global markets. Without any domestic economic data on tap until Wednesday's retail sales figures for May, the Canadian dollar was expected to trade in a narrow range. Data showed the U.S. consumer price index increased 0.3 percent in June, helping to lift the greenback 0.2 percent against a basket of currencies to the detriment of the loonie. Sentiment in financial markets around the world turned more optimistic on Tuesday after a spike in tensions in Ukraine and the Middle East on Monday had sent investors looking for safe havens. Investors, however, were still keeping a close eye on geopolitical risks after European Union foreign ministers threatened Russia with harsher sanctions over Ukraine, and Israel said no ceasefire was near as it hit targets across the Gaza Strip. "It's going to be a relatively quiet session, still looking at the geopolitical situation involving the Middle East and Ukraine and watching for news headlines stemming from those ongoing situations," said Martin Schwerdtfeger, FX strategist at TD Securities in Toronto. The Canadian dollar was at C$1.0736 to the greenback, or 93.14 U.S. cents, slightly weaker than Monday's close of C$1.0730, or 93.20 U.S. cents. The loonie rallied 1.6 percent through June but has given back about a half a percent so far this month. A disappointing jobs report and a central bank that has firmly retained its neutral stance have helped to sap some of the momentum from the currency. Canadian government bond prices were mixed across the maturity curve, with the two-year up half a Canadian cent to yield 1.083 percent. The benchmark 10-year was unchanged, leaving the yield to hover around a more than one-year low at 2.137 percent. (Editing by Peter Galloway)
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