CANADA FX DEBT-C$ outperforms, holds firm ahead of Jackson Hole summit

    * Canadian dollar at C$1.2537 or 79.76 U.S. cents
    * Longer-term bond prices lower across the maturity curve

    TORONTO, Aug 24 (Reuters) - The Canadian dollar firmed
marginally against the greenback on Thursday and outperformed
key currency rivals even as oil prices dipped and the U.S.
dollar nudged higher ahead of a meeting of global central
    The Canadian dollar has rallied nearly 7 percent this year, 
helped by a broadly weaker U.S. dollar and upbeat domestic
economic data that prompted the Bank of Canada to raise interest
rates for the first time in seven years last month. The central
bank is expected to raise rates again this fall.
    At 9:21 a.m. ET (1321 GMT), the Canadian dollar          was
trading at C$1.2536 to the greenback, or 79.77 U.S. cents, up
0.1 percent.
    The currency's strongest level of the session was C$1.2520,
while its weakest was C$1.2561.
    With little domestic news to steer direction until next
week's key quarterly GDP report, the Canadian dollar will take
direction from external drivers, in particular the annual
Jackson Hole, Wyoming, meeting this week.
    Speeches by U.S. Federal Reserve Chair Janet Yellen and
European Central Bank chief Mario Draghi will be parsed for
clues on monetary policy direction, even as significant new
policy signals were seen as unlikely.
    Canadian government bond prices were lower across the
maturity curve, with the two-year            price down 1
Canadian cent to yield 1.266 percent and the benchmark 10-year
            falling 9 Canadian cents to yield 1.892 percent.
    The Canada-U.S. two-year bond spread was -6.4 basis points,
while the 10-year spread was -29.5 basis points.

 (Reporting by Solarina Ho; Editing by Bill Trott)