CANADA FX DEBT-C$ rebounds from 8-month low as trade war fears ease

    * Canadian dollar at C$1.2890, or 77.58 U.S. cents
    * Loonie on track to break six-session losing streak
    * Oil prices rise 0.6 percent
    * Bond prices lower across yield curve

    TORONTO, March 6 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Tuesday, rebounding
from an eight-month low hit the day before, as trade war fears
eased and a historic agreement between North Korea and South
Korea boosted risk appetite.
    South Korea said it would hold a summit with North Korea for
the first time in more than a decade, which investors took as a
cue to sell the U.S. dollar        and buy commodity-linked
currencies, which tend to outperform as the outlook for the
global economy improves.             
    The price of oil       , one of Canada's major exports, rose
0.6 percent and global stocks climbed, helped also by increasing
resistance to U.S. President Donald Trump's proposed tariffs on
steel and aluminum.                      
    A number of countries including Canada, which is the largest
supplier of both metals to the United States, have threatened to
retaliate to the tariffs.
    At 9:16 a.m. EST (1416 GMT), the Canadian dollar         
was trading 0.6 percent higher at C$1.2890 to the greenback, or
77.58 U.S. cents, its first advance since Feb. 23.
    The currency traded in a range of C$1.2865 to C$1.2995. On
Monday, it touched its weakest since July 5 at C$1.3002.    
    Gains for the loonie came after Mexican and U.S. officials
pushed on Monday to speed renegotiation of the North American
Free Trade Agreement, with the United States floating the idea
of reaching an agreement "in principle" in coming weeks to avoid
political headwinds later this year.             
    Canada sends 75 percent of its exports to the United States.
The Bank of Canada has said that uncertainty about the future of
NAFTA is weighing increasingly on the outlook for Canada's
    The central bank has raised interest rates three times since
July but is expected to leave its benchmark interest rate on
hold at 1.25 percent in a policy announcement on Wednesday.
    Domestic trade data for January is also due on Wednesday and
the February employment report is due on Friday
    Canadian government bond prices were lower across the yield
curve, with the two-year            down 2 Canadian cents to
yield 1.759 percent and the 10-year             falling 13
Canadian cents to yield 2.21 percent.
    On Monday, the 10-year yield touched its lowest intraday in
nearly two months 2.145 percent. 

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)