* C$ ends at C$1.0204 vs US$, or 98 U.S. cents
* Bond prices fall across curve (Updates to close)
By Claire Sibonney
TORONTO, Sept 27 (Reuters) - The Canadian dollar posted its biggest gain in nearly two weeks on Tuesday as European talks to cut Greece's debt and recapitalize euro-zone banks eased fears about the region's crisis.
Discussions on beefing up the euro zone's bailout fund lifted stock markets, commodity prices and commodity-linked currencies but complicated the debate in Germany, where Chancellor Angela Merkel is struggling to unite her coalition government behind more steps to aid Europe's weak economies and banks. [ID:nL5E7KR1CV] [ID:nL5E7KR0T5]
"The influence is coming from the perception, not necessarily the reality, that Greece is resolvable," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
Support from rallying North American and European equities, as well as sharply higher commodity prices attracted investors to Canadian resource-related dollar.
"The Canadian dollar is picking up with other currencies, most notably antipodean currencies and risk-related currencies, at the expense of the U.S. dollar and the Japanese yen," Spitz said. [O/R] [GOL/] [MET/L]
The Canadian dollar CAD=D4 ended the North American session at C$1.0204 to the U.S. dollar, or 98.00 U.S. cents, up from Monday's close of C$1.0283 to the U.S. dollar, or $97.25 U.S. cents.
Steve Butler, director of foreign exchange trading at Scotia Capital, noted the Canadian dollar broke through important resistance in the C$1.0220-25 area.
He said the next resistance comes in around C$1.0140 and C$1.0085, which was the lowest point the currency reached on the day it began its steep selloff last week.
Bond prices slipped across the curve as risk sentiment improved. The two-year Canadian government bond CA2YT=RR was down 6 Canadian cents to yield 0.963 percent, while the 10-year bond CA10YT=RR dropped 58 Canadian cents to yield 2.212. percent. (Reporting by Claire Sibonney; editing by Jeffrey Benkoe and Peter Galloway)