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CANADA FX DEBT-C$ reverses from 11-day high as worries rise of second infection wave

    * Canadian dollar falls 0.4% against the greenback
    * Loonie touches its strongest intraday since April 3 at
1.3901
    * Price of U.S. oil rises 0.7%
    * Canadian bond yields ease across a flatter curve

    TORONTO, May 11 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday as the potential for a
second wave of coronavirus infections worried investors, with
the loonie retreating from an earlier 11-day high.
    Global stocks          fell as Germany and South Korea
reported a surge in COVID-19 cases after easing lockdowns.
    Canada runs a current account deficit and is a major
exporter 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 0.7% at $24.90 a
barrel after leading exporter Saudi Arabia said it will reduce
output by one million barrels per day on top of reductions
agreed under an OPEC+ pact.             
    The Canadian dollar        was trading 0.4% lower at 1.3981
to the greenback, or 71.53 U.S. cents. The currency, which
strengthened 1.1% last week, touched its strongest intraday
level since April 30 at 1.3901.
    Canada said it would create a bridge financing facility for
large employers and the expansion of its lending program to
middle-sized businesses that need support to get through the
economic downturn caused by the coronavirus.             
    Data on Friday showed that Canada lost a record-breaking 2
million jobs in April.              
    Speculators have increased their bearish bets on the
Canadian dollar to the heaviest since last June, data from the
U.S. Commodity Futures Trading Commission showed on Friday. As
of May 5, net short positions had increased to 32,052 contracts
from 29,044 in the prior week.
    Canadian government bond yields were lower across a flatter
curve on Monday, with the 10-year yield             down 2.4
basis points at 0.559%.

 (Reporting by Fergal Smith
Editing by Alistair Bell)
  
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