CANADA FX DEBT-C$ firmer on gains in equities, some commodities

* Firms to C$1.0267 vs US$, or 97.40 U.S. cents
    * Rises with North American equities, some commodities
    * Bond prices weaken

    By Allison Martell	
    TORONTO, June 12 (Reuters) - Canada's dollar firmed against
its U.S. counterpart on Tuesday, helped by gains in North
American equity markets and some commodity prices, including
U.S. crude oil and gold.	
    Both Canadian and U.S. stock indexes closed stronger, paring
much of the heavy losses seen on Monday, when investors worried
about the effectiveness of Europe's plan to bail out Spanish
banks. The Canadian dollar also weakened on Monday.	
    "Part of it may have been a bit of an over reaction
yesterday," said Mark Chandler, head of Canadian fixed income
and currency strategy at RBC Capital Markets. 	
    "People were a little frustrated in the lack of details on
the Spanish banking package, but when everything is said and
done, it's obviously better that we get some sort of
    A weekend deal by the 17-nation euro zone to lend Madrid up
to 100 billion euros ($125 billion) for its bank rescue fund,
more than an initial audit suggests it is likely to need, was
aimed at reassuring markets. But investors remained wary about
the broader euro zone debt crisis.	
    Chandler said the bounce in North American equity markets
and a modest rise in the price of some commodities also
supported the resource-linked currency. U.S. crude and gold
prices both rose. [. T O]   	
    The Canadian dollar closed at C$1.0267, or 97.40 U.S. cents,
compared with Monday's close at C$1.0312, or 96.97 U.S. cents.	
    With Tuesday's gains, the currency was little changed from
Friday's close at C$1.0270, or 97.37 U.S. cents.   	
    Sherif Gabriel, senior corporate trader at Western Union
Business Solutions, said he did not expect the dollar to
strengthen past C$1.02. He saw it weakening back above C$1.03 in
the next few days.	
    "What everybody's sitting on the sidelines waiting for here
is June 17th, for the Greek vote," said Gabriel. "It's a very
important moment for us to determine what's going to be
happening with the euro."	
    Concerns that the Greek election would force a disorderly
exit from the euro zone were rekindled by a report that EU
officials were considering ways to manage the fallout.
    "Risk currencies are trading marginally better against their
safe haven counterparts, but I think that doesn't necessarily
speak to a larger trend. I think it's really just a
consolidation move," said Greg Moore, foreign exchange
strategist at TD Securities.	
    Canadian bond markets were mostly lower across the curve.
Canada's two-year bond fell 7 Canadian cents to yield
1.029 percent, while the benchmark 10-year bond 
dropped 48 cents to yield 1.811 percent.