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CANADA FX DEBT-Canadian dollar climbs to 11-day high amid coronavirus optimism

    * Canadian dollar rises 0.9% against greenback
    * Loonie touches its strongest since March 27 at 1.3963
    * Price of U.S. oil increases 1.4%
    * Canadian bond yields rise across a steeper curve

    TORONTO, April 7 (Reuters) - The Canadian dollar
strengthened to an 11-day high against its U.S. counterpart on
Tuesday as investors welcomed a potential slowdown in the spread
of the coronavirus pandemic and hopes rose that the world's
biggest oil producers will cut output.
    World stock markets          enjoyed a second day of sharp
gains as signs of progress against the coronavirus in both
Europe and the United States and some more liberal helpings of
stimulus kept investors charging back in.             
    Canada runs a current account deficit and is a major
producer of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. crude oil futures        were up 1.4% to $26.44 a
barrel as hopes of production cuts outweighed analyst fears that
a global recession in the wake of the coronavirus crisis could
be deeper than expected.             
    At 9:08 a.m. (1308 GMT), the Canadian dollar        was
trading 0.9% higher at 1.3984 to the greenback, or 71.51 U.S.
cents.
    The currency touched its strongest intraday level since
March 27 at 1.3963, while the one-month rate for bankers'
acceptances, a measure of Canadian financial system stress, was
lower for the eighth straight day at 1.01%.
    Still, there were signs of economic troubles to come for
Canada. Landlords across the country should brace for rent
strikes in May unless the government steps in with rental
subsidies for occupants as the coronavirus outbreak decimates
wages, industry groups and tenants said on Monday.             
    Canadian government bond yields were higher across a steeper
curve in sympathy with U.S. Treasuries. The 10-year            
rose 4 basis points to 0.803%, having touched its highest
intraday level since March 27 at 0.838%.

 (Reporting by Fergal Smith
Editing by Paul Simao)
  
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