CANADA FX DEBT-C$ holds ground in broad US$ rally

* C$ flat at C$0.9752 vs US$, or $1.0254
    * Bond prices climb across the curve

    By Claire Sibonney
    TORONTO, Sept 18 (Reuters) - The Canadian dollar steadied
against the U.S. dollar on Tuesday after a sell-off in the last
couple sessions knocked the currency off its 13-month highs, but
it outperformed other majors as it benefited from a broad
rebound in the greenback.
    For the most part, riskier assets succumbed to renewed risk
aversion as investors turned their attention from central bank
stimulus to slowing global growth and doubts about Spain's
desire for an international aid package. 
    Even the safe-haven yen ceded ground against the U.S. dollar
on speculation the Bank of Japan might loosen policy after the
U.S. Federal Reserve launched a fresh round of bond-buying last
    "When you get these pure (U.S. dollar) moves, CAD tends to
get pulled along," said Adam Cole, global head of currency
strategy at RBC Capital Markets in London.
    At 8:07 a.m. (1207 GMT), the Canadian dollar stood
at C$0.9752 versus its U.S. counterpart, or $1.0254, flat from
Monday's North American session finish at C$0.9753, or $1.0253.
    Cole noted Canadian-dollar resistance around C$0.9630 and
support near C$0.9840.
    Canadian government bond prices edged higher across the
curve, tracking U.S. Treasuries up as a recent sharp sell-off
lured investors back into the cheapened market. 
    The two-year bond was up 2 Canadian cents to
yield 1.000 percent, while the benchmark 10-year bond
 added 26 Canadian cents, yielding 1.918 percent.