CANADA FX DEBT-C$ strengthens with oil as China hints at stimulus

    * Canadian dollar rises 0.2 percent against the greenback
    * Price of U.S. oil rises 1.5 percent
    * Canadian home sales fall 2.5 percent in December 
    * Canadian bond prices fall across a flatter yield curve

    TORONTO, Jan 15 (Reuters) - The Canadian dollar edged higher
against its broadly stronger U.S. counterpart on Tuesday as oil
prices rebounded and China hinted at more stimulus to support
its slowing economy.    
    China is seeking a strong start to the economy in the first
quarter to establish conditions favorable to achieving 2019's
major targets, state television reported on Monday, quoting
Premier Li Keqiang.                 
    Canada is running a current account deficit and exports many
commodities, including oil, so its economy could benefit from
measures that boost global growth.
    At 9:25 a.m. (1425 GMT), the Canadian dollar          was
trading 0.2 percent higher at 1.3254 to the greenback, or 75.45
U.S. cents. The currency, which on Monday touched its weakest in
nearly one week at 1.3297, traded in a range of 1.3244 to
    The price of oil rose after tumbling the previous session,
although a darkening economic outlook may soon weigh on growth
in fuel demand. U.S. crude        prices were up 1.5 percent at
$51.25 a barrel.                    
    The U.S. dollar        rose against a basket of major
currencies after data showing Germany's economy slowed in 2018
weighed on the euro, while investors awaited a vote later on
Tuesday in Britain's parliament on Prime Minister Theresa May's
Brexit deal.             
    Resales of Canadian homes fell 2.5 percent in December from
the previous month, extending a string of monthly declines since
September, the Canadian Real Estate Association said.
    The Bank of Canada, which has hiked interest rates five
times since July 2017, said last week that soft housing activity
would weigh on the domestic economy as it left interest rates on
    Canadian inflation data for December is due on Friday, which
could help guide market expectations for additional rate hikes
from the central bank.  
    Canadian government bond prices were higher across a flatter
yield curve, with the two-year            up 0.5 Canadian cent
to yield 1.883 percent and the 10-year             rising 16
Canadian cents to yield 1.945 percent.
    The gap between Canada's two-year yield and its U.S.
equivalent narrowed by 1.8 basis points to a spread of 63.1
basis points in favor of the U.S. bond.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)