CANADA FX DEBT-C$ strengthens slightly as greenback resumes fall

* Canadian dollar at C$1.2522 or 79.86 U.S. cents
    * Bond prices mixed across the maturity curve

    By Andrea Hopkins
    TORONTO, March 23 (Reuters) - The Canadian dollar continued
to strengthen against the greenback on Monday as last week's
U.S. dollar selloff against major currencies was given another
push by comments from a U.S. Federal Reserve official. 
    The greenback has struggled since a Fed statement last week 
that signaled a slower approach to raising interest rates than
some investors had expected.
    "We're seeing a bit of CAD strength really on the back of
that broader U.S. dollar weakening," said Camilla Sutton, chief
currency strategist at Scotiabank.
    The dollar resumed its fall on Monday, after its steepest
weekly drop in 3-1/2 years, as St. Louis Fed President James
Bullard told CNBC that the dollar index, which measures the
greenback against a basket of major currencies, was not far from
fair value. He also said it was unclear how much more the dollar
would strengthen against the euro.  
    At 9:31 a.m. (1331 GMT) the Canadian dollar was at
C$1.2522 against the U.S. dollar, or 79.86 U.S. cents, stronger
than Friday's North American session close of C$1.2579, or 79.50
U.S. cents.
    Sutton said the U.S. dollar selloff could push the Canadian
currency to near the 50-day average at C$1.2476, with last
week's low at C$1.2450 the next resistance level.
    Canadian government bond prices were mixed across the
maturity curve, with the two-year flat to yield 0.457
percent and the benchmark 10-year rising 3 Canadian
cents to yield 1.301 percent.

 (Reporting by Andrea Hopkins; Editing by Peter Galloway)