CANADA FX DEBT-Canadian dollar strengthens as calm returns to Wall Street

    * Canadian dollar rises 0.2% against the greenback
    * Loonie touches its weakest since Sept. 30 at 1.3340
    * Price of U.S. oil falls 2.1%
    * Canadian bond yields rise across a steeper curve

    TORONTO, Oct 7 (Reuters) - The Canadian dollar strengthened
against the greenback on Wednesday as calm returned to stock
markets after they were spooked one day earlier by fading hope
of U.S. stimulus, with the loonie rebounding from an earlier
one-week low.
    U.S. stock index futures recovered after President Donald
Trump's abrupt call to end stimulus talks sent Wall Street
tumbling in the previous session.             
    Canada sends about 75% of its exports to the United States,
including oil. U.S. crude oil futures        were down 2.1% at
$39.81 a barrel, pressured by dashed stimulus hopes and a larger
than expected rise in U.S. crude inventories.             
    The Canadian dollar        was trading 0.2% higher at 1.3281
to the greenback, or 75.30 U.S. cents. The currency touched its
weakest intraday level since Sept. 30 at 1.3340.
    Investors may be reluctant to make big bets on the currency
ahead of a speech on Thursday by Bank of Canada Governor Tiff
Macklem on the evolution of risks during a pandemic, while
Canada's employment report for September is due on Friday.
    Canadian government bond yields were higher across a steeper
curve on Wednesday, with the 10-year             up 4.4 basis
points at 0.614%. 

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)