CANADA FX DEBT-C$ pushes higher with risk rebound

* C$ climbs to C$0.9844 to the U.S. dollar, or $1.0158

* Bond prices edge lower (Adds details)

TORONTO, Aug 22 (Reuters) - Canada’s dollar firmed slightly against the U.S. currency on Monday, while government bond prices fell as a risk bias returned to markets with world stocks and oil prices pushing higher.

But investors were in no mood to aggressively buy risky assets on lingering worries that the sovereign debt crisis in euro zone peripheral countries may spread to bigger economies in the region. [MKTS/GLOB]

“The market seems to be trying to figure out exactly what it wants to do next,” said John Curran, senior vice president at CanadianForex.

“This week is going to be about people figuing out what’s going to happen at Jackson Hole so we may see rather subdued ranges but probably volatile trading within those ranges.”

An annual bankers gathering in Jackson Hole, Wyoming, late this week is the key event of the week. Investors are waiting to see whether the U.S. Federal Reserve flags further stimulus, a year after Chairman Ben Bernanke launched a second round of quantitative easing to revive the economy.

At 9:08 a.m. (1308 GMT), the Canadian dollar CAD=D4 was at C$0.9844 to the U.S. dollar, or $1.0158, up from Friday's North American finish at C$0.9886 to the U.S. dollar, or $1.0115.

Curran said C$0.9830 and C$0.9770 would provide support while a break and close above C$0.9930 would signal another attempt at par with the U.S. currency.

The two-year bond CA2YT=RR dipped 3 Canadian cent to yield 0.895 percent, while the 10-year bond CA10YT=RR fell 26 Canadian cents to yield 2.333 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)