CANADA FX DEBT-C$ notches 11-day high as Huawei reprieve helps risk appetite

    * Canadian dollar rises 0.2% against the greenback
    * Loonie touches its strongest since May 10 at 1.3396
    * Price of U.S. oil eases 0.3%
    * Canada's 10-year yield rises to near 3-week high at 1.748%

    TORONTO, May 21 (Reuters) - The Canadian dollar strengthened
to an 11-day high against its U.S. counterpart on Tuesday as
expectations of a further escalation in the U.S.-China trade war
    Global stocks steadied after declines over the last two
sessions, as the United States temporarily eased trade
restrictions on Chinese tech giant Huawei to minimize disruption
for its customers.             
    Economic growth in China and the United States could be
0.2%-0.3% lower on average by 2021 and 2022 if the two countries
do not row back on tit-for-tat tariffs in a dispute that has
dampened the global economic outlook, the OECD said.
    Canada exports many commodities, including oil, and runs a
current account deficit, so its economy could be hurt by a
slowdown in the global flow of capital or trade.
    U.S. crude oil futures       , which have been supported in
recent days by escalating U.S.-Iran tensions, were down 0.3% at
$62.94 a barrel.             
    At 9:05 a.m. (1305 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3399 to the greenback, or 74.63 U.S.
cents. The currency touched its strongest level since May 10 at
    Canada will move quickly to ratify the new North American
trade pact, Foreign Minister Chrystia Freeland said on Saturday,
a day after the United States agreed to lift tariffs on Canadian
steel and aluminum.                     
    Canadian government bond prices were lower across the yield
curve on Tuesday as the market reopened following Monday's
Victoria Day holiday. The 10-year             declined 55
Canadian cents, while the bond's yield touched its highest since
May 3 at 1.748%.
    Canada's housing market will stay stuck in the doldrums,
with average prices stagnating this year and then rising 1.7%
next year, hardly keeping pace with inflation, a Reuters poll of
economists and property market experts showed.             

 (Reporting by Fergal Smith
Editing by Paul Simao)