CANADA FX DEBT-Canadian dollar outperforms most G10 peers as oil rallies

    * Canadian dollar rises 0.2% against the greenback
    * Loonie trades in a range of 1.2662 to 1.2694
    * Price of U.S. oil increases 1.2%
    * Canadian bond yields ease across a flatter curve

    TORONTO, Sept 13 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Monday as higher oil
prices offset broad-based gains for the greenback, with the
loonie faring better than nearly all the other G10 currencies.
    The price of oil, one of Canada's major exports, was
supported by concerns over shut output in the United States
because of damage from Hurricane Ida.             
    U.S. crude        rose 1.2% to $70.53 a barrel, while the
Canadian dollar was trading 0.2% higher at 1.2665 to the
greenback, or 78.96 U.S. cents. The currency traded in a range
of 1.2662 to 1.2694.
    Among G10 currencies, only the Norwegian crown        had a
bigger gain. Norway is also a major producer of oil.    
    Data on Friday showed that Canadian employment has climbed
to within 1% of pre-pandemic levels but the boost the loonie got
from the data was offset by uncertainty ahead of the Sept. 20
federal election and broad-based gains for the U.S. dollar
    The greenback        on Monday strengthened to a two-week
high versus a basket of major currencies as market expectation
builds that the Federal Reserve could taper its stimulus sooner
rather than later despite a surge in COVID-19 cases.
    Speculators have raised their bearish bets on the loonie,
data from the U.S. Commodity Futures Trading Commission showed
on Friday. As of Sept. 7, net short positions had increased to
6,010 contracts from 2,848 in the prior week.
    Canadian government bond yields were lower across a flatter
curve, with the 10-year             down 2.2 basis points at

 (Reporting by Fergal Smith;
Editing by Bernadette Baum