CANADA FX DEBT-C$ eyes budget, pares losses hit after Brussels attacks

* Canadian dollar at C$1.3098 or 76.35 U.S. cents
    * Bond prices higher across the maturity curve

    TORONTO, March 22 (Reuters) - The Canadian dollar pared
losses against its U.S. counterpart on Tuesday from a session
low hit after deadly blasts in Brussels, with the market bracing
for a federal budget announcement expected to include
significant fiscal stimulus.
    The explosions in the Belgian capital pushed investors
towards the safety of gold and government bonds, while oil
prices seesawed. 
    At 9:24 a.m. EDT (1354 GMT), the Canadian dollar 
was trading at C$1.3098 to the greenback, or 76.35 U.S. cents,
barely weaker than the Bank of Canada's official Monday close of
C$1.3085, or 76.42 U.S. cents.
    Traders and strategists are awaiting the new Liberal
government's first federal budget, which is due at 4 p.m. EDT.
The government is expected to run a C$29 billion deficit in
fiscal 2016-17, a Reuters poll last week showed, as it borrows
more to increase infrastructure spending in the hopes of
boosting growth.
    The currency's strongest level of the session was C$1.3055,
while its weakest level was C$1.3138.
    Canadian government bond prices were higher across the
maturity curve, with the two-year price up 1 Canadian
cent to yield 0.553 percent and the benchmark 10-year
 rising 6 Canadian cents to yield 1.296 percent.
    The Canada-U.S. two-year bond spread was -30.3 basis points,
while the 10-year spread was -61.3 basis points.

 (Reporting by Alastair Sharp Editing by W Simon)