* C$ up slightly at C$0.9835 vs US$, or $1.0168 * Bond prices ease across the curve By Claire Sibonney TORONTO, Sept 27 (Reuters) - The Canadian dollar advanced against the U.S. dollar on Thursday as riskier assets climbed amid hopes Spain's budget could nudge Madrid towards a rescue program and allow the European Central Bank to launch into a new bond-buying plan. European shares reclaimed some of the previous day's sharp losses and the euro steadied as markets expected the Spanish government to announce economic reforms that aim to avoid the political humiliation of having Brussels impose conditions on a request for an international bailout. "The focus again remains on Spain. Spain will be the driver of the volatility seen in euro and by extension we'll see either a destructive or a constructive tone to risk, which is influential in pricing dollar/Canada's directional bias," said Jack Spitz, managing director of foreign exchange at National Bank Financial. "Euro is driving the bus." Details on Spain's 2013 budget are to be announced at a news conference starting later on Thursday following a cabinet meeting. At 8:05 a.m., the Canadian dollar stood at C$0.9835 versus its U.S. counterpart, or $1.0168, firmer than Wednesday's North American session close at C$0.9852, or $1.0150. Spitz noted near-term Canadian dollar resistance around C$0.9775 and support around C$0.9875. Canadian government bond prices were lower across the curve. The two-year bond was down 3 Canadian cents to yield 1.105 percent, while the benchmark 10-year bond lost 15 Canadian cents, yielding 1.761 percent.