CANADA FX DEBT-C$ edges higher against greenback, holds in recent range

 (Adds quote, updates prices)
    * Improving risk appetite provides modest support to loonie
    * Canadian bond yields rise slightly 

    By Karen Brettell
    NEW YORK, Aug 26 (Reuters) - The Canadian dollar edged
higher against the greenback on Monday as risk sentiment
improved, but held in the middle of its tight recent range as
investors continued to focus on the fallout of the U.S.-China
trade war.
    The United States and China sought to ease tensions on
Monday, with Beijing calling for calm and U.S. President Donald
Trump predicting a trade deal after markets fell in response to
new tariffs from both countries.             
    That boosted risk sentiment, sending stock prices higher,
and gave a modest boost to the Canadian currency.             
    Ongoing concerns about the trade dispute, however, may cap
further gains.
    Canada exports many commodities, including oil, so its
economy could be hurt by a slowdown in the flow of global trade.
    "The rekindling in risk aversion in global markets should,
while it persists, underpin USD-CAD," analysts at Action
Economics said in a report on Monday.
    The Canadian dollar          was last up 0.14% at 1.3260 to
the greenback. It has held between 1.3248 and 1.3344 since Aug.
    Ten-year Canadian bond yields             rose to 1.21% from
1.17% late on Friday.

 (Reporting by Karen Brettell; editing by Jonathan Oatis and Tom