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CANADA FX DEBT-Canadian dollar gains as potential stimulus buoys sentiment

    * Canadian dollar rises 0.2% against the greenback
    * Foreign investors buy C$49.04 billion in Canadian
securities
    * Price of U.S. oil 
    * Canadian bond yields rise across a steeper curve

    TORONTO, June 16 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Tuesday as
investors cheered the potential for new U.S. infrastructure
spending and domestic data showed record demand for Canadian
securities in April.
    Foreign investors bought a record C$49.04 billion in
Canadian securities in April, all in debt securities, following
a revised C$9.82 billion total sale in March, Statistics Canada
said.             
    Canada runs a current account deficit so its economy tends
to benefit from foreign creditor inflows.
    Global shares          climbed after a report of a new $1
trillion U.S. infrastructure programme and as a record jump in
U.S. retail sales in May supported the view that the worst of
the coronavirus economic impact was over.             
    The price of oil, one of Canada's major exports, rose after
the IEA increased its oil demand forecast for 2020 and as record
supply cuts provided support. U.S. crude oil futures        were
up 3.6% at $38.44 a barrel.             
    The Canadian dollar        was trading 0.2% higher at 1.3540
to the greenback, or 73.86 U.S. cents. The currency, which on
Monday hit a two-week low at 1.3685, traded in a range of 1.3504
to 1.3597.
    New Bank of Canada Governor Tiff Macklem and Senior Deputy
Carolyn Wilkins are due to speak to the House of Commons finance
committee at 3:00 p.m. (1900 GMT).
    Investors will be looking for any change in tone from the
central bank on Macklem's watch. Earlier this month, the bank
said the impact of the coronavirus pandemic on the global
economy appeared to have peaked and the Canadian economy seemed
to have avoided worst-case projections.                 
    Canadian government bond yields were higher across a steeper
curve, with the 10-year yield             up 5.1 basis points at
0.570%.

 (Reporting by Fergal Smith
Editing by Alistair Bell)
  
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