CANADA FX DEBT-C$ edges higher against weaker greenback

    * Canadian dollar at C$1.3364, or 74.83 U.S. cents
    * Bond prices higher across a flatter yield curve
    * 10-year yield touches its lowest in nearly 4 months

    TORONTO, March 27 (Reuters) - The Canadian dollar
strengthened slightly on Monday against its U.S. counterpart as
an uncertain outlook for U.S. fiscal stimulus weighed broadly on
the greenback, offsetting lower prices for oil, one of Canada's
major exports.
    The U.S. dollar        tumbled as investors worried that
U.S. President Donald Trump's defeat over healthcare reform
foreshadowed difficulties delivering other key campaign
promises, in particular tax cuts.             
    Large tax cuts were "highly dependent on the savings from
replacing Obamacare," said RBC Capital Markets in a research
    U.S. crude        prices were down 1.54 percent at $47.23 a
barrel, pressured by uncertainty over whether an Organization of
the Petroleum Exporting Countries-led production cut will be
extended beyond June in an effort to counter a glut of crude.
    At 9:24 a.m. ET (1324 GMT), the Canadian dollar          was
trading at C$1.3364 to the greenback, or 74.83 U.S. cents,
stronger than Friday's close of C$1.3380, or 74.74 U.S. cents.
    The currency traded in a range of C$1.3322 to C$1.3365.
    An uncertain U.S. policy outlook has contributed to a
cautious stance from the Bank of Canada. As recently as January,
the central bank said an interest rate cut remained on the
table. It last cut in July 2015 to leave its policy rate at 0.50
    Bank of Canada Governor Stephen Poloz is likely to be asked
about the recent better-than-expected economic performance in
Canada when he speaks on Tuesday. But tame inflation data on
Friday has indicated little pressure for a rate hike.
    Speculators turned the most bearish on the Canadian dollar
since March 2016, data from the Commodity Futures Trading
Commission and Reuters calculations showed on Friday. Canadian
dollar positions swung sharply to net short 24,403 contracts as
of March 21 from net long 21,458 contracts a week earlier.
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries as demand for
safe-haven assets rose. The two-year            gained 4.5
Canadian cents to yield 0.727 percent and the 10-year
            climbed 55 Canadian cents to yield 1.576 percent.
    The 10-year yield touched its lowest intraday since Nov. 30.
at 1.570 percent.

 (Reporting by Fergal Smith; Editing by Nick Zieminski)