* C$ rises to $1.0131
* Bond yields rise across the curve
TORONTO, Feb 7 (Reuters) - Canada's dollar held firm against the U.S. currency on Monday morning, supported by optimism about a global economic recovery and rising commodity prices.
World stocks were firmer, hovering near a 29-month high, and copper rallied to a record high while oil prices were also advancing. [MKTS/GLOB]
"We're going back to watching asset markets for direction," said Adam Cole, global head of FX strategy at RBC Capital Markets in London, noting a lack of major economic data releases this week and a risk-on tone in early trade.
"Most currencies are down against a generally stronger dollar. (Canada's dollar) is generally flattish against the (U.S.) dollar but performing reasonably well against its commodity pairs and G10 currencies."
At 8:15 a.m. (1515 GMT), the Canadian dollarwas at C$0.9871 to the U.S. dollar, or $1.0131, moderately firmer than Friday's North American close at C$0.9884 to the U.S. dollar, or $1.0117.
Cole said the Canadian dollar held its ground partly in a North American play on last week's employment figures, where Canada's economy created more than quadruple the 15,000 that markets had expected. [ID:nN04174016]
Although the rise in January U.S. payrolls was much smaller than expected, traders concluded the figure was affected by severe snowstorms and instead focused on a sharp drop in the jobless rate.
"The market's reading of the U.S. employment data on Friday was, on balance, better-than-expected despite what the headline number showed," said Cole. "The market has gone with the view that the weather was a major factor."
RBC put the Canadian dollar's trading range on Monday between C$0.9840-C$0.9905.
Canadian government bond yields rose across the curve, following the lead of U.S. 10-year Treasury yields, which hit their highest since May.
The two-year bonddipped 1 Canadian cent to yield 1.855 percent, while the 10-year bond fell 12 Canadian cents to yield 3.476 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
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