CANADA FX DEBT-Loonie rises with oil prices after Chinese factory data

    * Canadian dollar at C$1.2926 or 77.36 U.S. cents
    * Bond prices mixed across the maturity curve

    March 14 (Reuters) - The Canadian dollar strengthened
against the greenback on Wednesday, boosted by a rise in oil
prices after strong Chinese factory activity lifted commodity
    At 9:14 a.m. EDT (1314 GMT), the Canadian dollar         
was trading up 0.3 percent at C$1.2926 to the greenback, or
77.36 U.S. cents.
    Data showed China's industrial output grew 7.2 percent in
the first two months of the year compared with the year before,
topping expectations and boosting optimism over the outlook for
    China is the world's second-largest economy and the world's
largest importer of commodities. U.S. crude        prices were
up 0.61 percent at $61.08 a barrel, while Brent crude        
added 0.37 percent to $64.88.      
    The Canadian dollar also benefited from U.S. dollar softness
after U.S. retail sales unexpectedly dropped in February and as
investors continued to be wary of the risk of a global trade
    The U.S. dollar edged up 0.1 percent against a basket of
major currencies       . 
    The loonie was able to recover some of Tuesday's nearly 1
percent decline after Bank of Canada Governor Stephen Poloz said
a degree of untapped potential remains in the Canadian labor
market, reinforcing expectations the central bank will take its
time raising interest rates further.             
    Canadian government bond prices were mixed across the
maturity curve, with the two-year            price down 1
Canadian cent to yield 1.795 percent and the benchmark 10-year
            flat to yield 2.204 percent.

 (Reporting by Leah Schnurr in Ottawa
Editing by Bernadette Baum)