CANADA’S FX DEBT – Canadian dollar soars as bond yields rise

    * Canadian dollar strengthens 0.1% against the greenback
    * Canadian payroll employment increases 59,700 in August
    * Price of U.S. oil falls 0.2%
    * Canadian bond yields rise across the curve

    TORONTO, Oct 28 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Thursday and Canadian bond
yields rose, adding to moves from the previous day when the Bank
of Canada signaled an earlier start to interest rate hikes.
    The BoC on Wednesday signaled it could hike interest rates
as soon as April 2022 and ended its bond-buying program, citing
Canada's robust economic growth, high COVID-19 vaccination
rates, and strong employment gains.             
    Canadian payroll employment increased by 59,700 in August,
driven by gains in the services-producing sector in Ontario and
Quebec, Statistics Canada said.
    The Canadian dollar        was trading 0.1% higher at 1.2340
to the greenback, or 81.04 U.S. cents, after trading in a range
of 1.2339 to 1.2382.
    Gains for the loonie came as corporate earnings results gave
Wall Street a boost.             
    But the price of oil, one of Canada's major exports,
declined 0.2% to $82.50 a barrel after Iran said talks with
world powers on its nuclear programme would resume by the end of
November and U.S. crude inventories rose by much more than
expected.             
    Canadian government bond yields were higher across the
curve, tracking the move in U.S. Treasuries and German Bunds as 
ECB President Christine Lagarde said she expects the central
bank's pandemic-era asset-purchase program to end in March.
    The 2-year yield            touched its highest level since
February 2020 at 1.262% before dipping to 1.149%, up 7.3 basis
points on the day, while the 10-year yield was up 7.7 basis
points at 1.696%.

 (Reporting by Fergal Smith; Editing by Andrea Ricci)
  

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