* C$ slightly firmer at $1.0105
* Bonds ease across the curve
TORONTO, Feb 8 (Reuters) - Canada's dollar pared overnight gains against the U.S. currency on Tuesday after China raised interest rates for the second time in just over a month.
The Canadian dollar, like its commodity-sensitive Australian cousin, retreated from session highs as oil prices fell after China's central bank raised interest rates by 25 basis points. For details, see [ID:nTOE706030] [O/R] [FRX/]
Still, world stocks held near the previous day's 29-month high as China's monetary tightening did little to immediately change the favorable outlook for global growth this year. [MKTS/GLOB]
At 7:55 a.m. (1255 GMT), the Canadian dollar was
at C$0.9896 to the U.S. dollar, or $1.0105, retreating from an
overnight high at C$0.9869 to the U.S. dollar, or $1.0133.It was also a touch firmer than Monday's North American session close at C$0.9902 to the U.S. dollar, or $1.0099.
"Canada is more or less flat to where it was yesterday. It's still consolidation for Canada," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
"Price action has been muted for quite some time, with the exception of a few notable days. It's waiting for the next leg up or down."
He said he was eyeing C$0.9832, which is the 2011 high, as well as C$0.9925, which represents the 20-day moving average.
Canadian government bond prices eased across the curve, tracking U.S. Treasuries, as investors prepared for $72 billion of new debt to be auctioned this week.
The two-year bond was off 5 Canadian cents to yield 1.858 percent, while the 10-year bond slipped 15 Canadian cents to yield 3.453 percent. (Reporting by Ka Yan Ng; editing by Jeffrey Benkoe)
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