* C$ little changed at 98.84 U.S. cents
* Canadian bonds track U.S. Treasuries
TORONTO, Dec 8 (Reuters) - The Canadian dollar eased slightly against the U.S. currency on Wednesday morning as riskier assets were mixed and as market players digested proposed tax cuts in the United States.
At 8:07 a.m. (1307 GMT), the Canadian dollarwas at C$1.0117 to the U.S. dollar, or 98.84 U.S. cents, down slightly from Tuesday's close at C$1.0114 to the U.S. dollar, or 98.87 U.S. cents.
"While the Canadian dollar is one of the best performing currencies, it's still more or less flat against the U.S.," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
"Commodities are posting losses, Dow futures are underwater, so both are likely to contribute to a move toward the next level of decent resistance in dollar/Canada at C$1.0140, which happens to be the overnight high."
Overseas stocks were firmer on Wednesday as a deal on U.S. tax cuts offered some optimism, which pushed the Canadian dollar to an overnight high at C$1.0098 to the U.S. dollar, or 99.03 U.S. cents.
But as the North American session began, U.S. stock index futures indicated a mixed open and the price of oil was softer, partly on mounting fears that China may soon raise interest rates. The Canadian dollar often takes its cue from the price of crude, a key Canadian export.
Market players were also mulling the impact of a U.S. proposal to extend tax cuts in the context of one senior Chinese official's expression of concern about America's long-term financial health. It also contrasts sharply with euro zone governments, which are bearing down hard on public deficits. [ID:nTOE6B7078] [MKTS/GLOB]
Canadian bond prices slid on Wednesday, mirroring U.S. Treasuries, as the tax cut proposal stoked fears over the U.S. government's control of the budget deficit. [US/]
The two-year bondwas down 11 Canadian cents to yield 1.690 percent, while the 10-year bond dropped 70 Canadian cents to yield 3.308 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)
Our Standards: The Thomson Reuters Trust Principles.