CANADA FX DEBT-C$ pares its gains as bets rise on BoC rate cut this year

 (New throughout)
    * Canadian dollar rises 0.2% against the greenback
    * Loonie touches a 9-day low at 1.3145
    * Price of U.S. oil increases 2.9%
    * Canadian bond prices rise across the yield curve

    TORONTO, July 10 (Reuters) - The Canadian dollar rose
against its broadly weaker U.S. counterpart on Wednesday, but
gave up much of its gains as expectations rose that the Bank of
Canada would cut interest rates this year amid concerns over
global trade wars.
    The Bank of Canada held its benchmark interest rate steady
at 1.75% on Wednesday and raised its second-quarter growth
forecast as expected while highlighting the risks that trade
wars posed to the global economy.             
    Still, the chances of a rate cut this year by the central
bank by December climbed to 35% from about 20% before the rate
decision, data from the overnight index swaps market indicated.
    Bank of Canada Governor Stephen Poloz and Senior Deputy
Governor Carolyn Wilkins will hold a press conference at 11:15
ET (1515 GMT).
    At 10:50 a.m. (1450 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3111 to the greenback, or 76.27 U.S.
cents. The currency's strongest level of the session was 1.3070,
while it touched its weakest since July 1 at 1.3145.
    Meanwhile, the U.S. dollar        fell against a basket of
major currencies after Federal Reserve Chairman Jerome Powell
struck a downbeat tone in congressional testimony, saying trade
uncertainties and concerns about the global outlook continued to
exert pressure on the U.S. economy.             
    The price of oil, one of Canada's major exports, was boosted
by industry data showing U.S. inventories fell more than
expected, while major U.S. producers evacuated rigs in the Gulf 
of Mexico before a storm. U.S. crude oil futures        were up
2.9% at $59.50 a barrel.             
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 9 Canadian cents to yield
1.591% and the 10-year             rising 5 Canadian cents to
yield 1.579%.
    Earlier in the session, the 2-year yield touched its highest
since May 24 at 1.624%.

 (Reporting by Fergal Smith; Editing by David Gregorio and
Bernadette Baum)