CANADA FX DEBT-Canadian dollar steadies as measure of stock market fear eases

    * Canadian dollar trades near unchanged against the
    * Price of U.S. oil increases 5.3%
    * Loonie touches a 5-day low intraday at 1.4064
    * Canadian bond yields rise at the front of the curve

    TORONTO, May 12 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Tuesday, clawing back some
earlier losses as oil prices rose and a measure of expected
stock market volatility fell to a 10-week low.    
    The VIX Index        fell more than 4%, its fourth straight
daily decline, as moves by China to waive off tariffs on some
U.S. imports helped boost global shares         . Trade tensions
between the two countries have resurfaced.             
    Canada is a major exporter of commodities, including oil, so
the loonie tends to be particularly sensitive to the global flow
of trade and capital.
    U.S. crude oil futures        were up 5.3% at $25.43 a
barrel, boosted by an unexpected commitment from Saudi Arabia to
deepen production cuts in June to help drain a supply glut built
up during the coronavirus crisis.             
    The Canadian dollar          was trading nearly unchanged at
1.3995 to the greenback, or 71.45 U.S. cents. The currency,
which has fallen about 7% this year, touched its weakest
intraday level since May 7 at 1.4064.
    Ottawa, which is rolling out about C$300 billion in fiscal
measures to support Canada's economy, on Monday said it would be
the lender of last resort for large Canadian employers that need
help getting through the economic downturn, including those in
the hard-hit airline and energy sectors.                  
    Canadian government bond yields rose at the front of the
curve, with the 2-year            up 2.1 basis points at 0.305%.

 (Reporting by Fergal Smith; editing by Grant McCool)