CANADA FX DEBT-Canadian dollar gains as U.S. stimulus bets boost oil prices

    * Canadian dollar rises 0.4% against the greenback
    * Canadian housing starts rise 15.8% in July
    * Price of U.S. oil increases 2.1%
    * Canadian bond yields rise across a steeper curve

    TORONTO, Aug 11 (Reuters) - The Canadian dollar rose against
its broadly weaker U.S. counterpart on Tuesday as the prospect
of U.S. economic stimulus bolstered oil prices and domestic data
showed an unexpected jump in housing starts.    
    Canadian housing starts rose 15.8% to 245,604 units in July,
data from the national housing agency showed, as the market
continued to bounce back from the COVID-19 crisis. Economists
had expected starts to dip to 210,000.
    U.S. crude        prices were up 2.1% at $42.8 a barrel,
supported by stimulus hopes as well as a rebound in Asian demand
as economies reopen. Oil is one of Canada's major exports.
    The U.S. dollar        lost ground against a basket of major
currencies as data showing investor sentiment in Germany
improved more than expected in August boosted the euro       .
    The Canadian dollar        was trading 0.4% higher at 1.3303
to the greenback, or 75.17 U.S. cents. The currency traded in a
range of 1.3270 to 1.3361.        
     The future of Canadian Finance Minister Bill Morneau
appeared uncertain on Tuesday after a newspaper said he had
clashed with Prime Minister Justin Trudeau over how much Ottawa
was spending to tackle the coronavirus outbreak.             
    Ottawa is rolling out more than C$300 billion of economic
support, about 15% of gross domestic product, in response to the
coronavirus crisis, while the Bank of Canada's balance sheet as
a share of GDP has expanded this year by more than some major
counterparts, including the U.S. Federal Reserve.
    Canadian government bond yields were higher across a steeper
curve in sympathy with U.S. Treasuries as stocks rallied
globally. The 10-year             was up 5.6 basis points at

 (Reporting by Fergal Smith; editing by Jonathan Oatis)