CANADA FX DEBT-C$ strengthens as oil rises, Turkish lira rebounds

    * Canadian dollar at C$1.3086, or 76.42 U.S. cents
    * Price of U.S. oil rises 1.6 percent
    * Bond prices slightly lower across the yield curve

    TORONTO, Aug 14 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Tuesday as oil prices rose and
the threat from the collapse of the Turkish lira ebbed.
    World equities markets regained their footing as Turkey's
currency rebounded about 5 percent against the greenback and
reassuring German economic data offset signs of slowing growth
in China.             
    Investors have worried that a crisis in Turkey could spread
to other emerging market countries. Canada exports many
commodities and runs a current account deficit so its economy
could be hurt if the flow of trade or capital slows.
    The price of oil, one of Canada's major exports, jumped
after Saudi Arabia said it cut production, adding to concerns
over global supply as U.S. sanctions against Iran curb its
    U.S. crude        prices were up 1.6 percent at $68.27 a
    At 9:07 a.m. EDT (1307 GMT), the Canadian dollar          
traded 0.4 percent higher at C$1.3086 to the greenback, or 76.42
U.S. cents. The currency, which touched a near 3-week low of
C$1.3179 on Monday, traded in a range of C$1.3072 to C$1.3135.
    Canadian home prices rose in July from June on broad-based
gains in most parts of Canada, but the price increases were
small compared with historical averages for the month, the
Teranet-National Bank Composite House Price Index data showed on
    Canada's manufacturing sales data for June is due on
Thursday and the July inflation report is set for Friday.
    Canadian government bond prices were slightly lower across
the yield curve, with the two-year            down 0.5 Canadian
cent to yield 2.114 percent and the 10-year             falling
3 Canadian cents to yield 2.306 percent.

 (Reporting by Fergal Smith
Editing by Jeffrey Benkoe)