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CANADA FX DEBT-C$ notches 7-month high as COVID-19 treatment boosts sentiment

    * Canadian dollar rises 0.1% against the greenback
    * Loonie touches its strongest since Jan. 24 at 1.3130
    * Price of U.S. oil rises 0.9%
    * Canadian bond yields trade mixed across the curve

    TORONTO, Aug 24 (Reuters) - The Canadian dollar climbed to a
seven-month high against its broadly weaker U.S. counterpart on
Monday as approval by U.S. regulators of a treatment for
COVID-19 patients buoyed risk appetite. 
    The S&P 500 and Nasdaq were set to open at record highs
after the U.S. health regulator approved the emergency use of
blood plasma in COVID-19 patients and on a report that the Trump
administration may fast-track a vaccine candidate.             
    Canada runs a current account deficit and is a major
exporter of commodities, including oil, so the loonie tends to
be sensitive to prospects for the global flow of trade and
capital.
    U.S. crude        prices were up 0.9% at $42.7 a barrel as
storms closed in on the Gulf of Mexico, shutting more than half
its oil production, while the safe-haven U.S. dollar       
weakened against a basket of major currencies.             
            
    The Canadian dollar        was trading 0.1% higher at 1.3157
to the greenback, or 76.01 U.S. cents. The currency touched its
strongest intraday level since Jan. 24 at 1.3130.
    Speculators have raised bearish bets on the loonie to the
highest since May, data from the U.S. Commodity Futures Trading
Commission showed on Friday. As of Aug. 18, net short positions
had increased to 33,587 contracts from 29,547 in the prior week.
    Canada's main opposition Conservative Party on Monday
elected Erin O'Toole, a former cabinet minister and armed forces
veteran, to be its new leader and the primary challenger to
Liberal Prime Minister Justin Trudeau.             
    Canadian government bond yields were mixed across the curve,
with the 10-year             up 0.6 basis points at 0.544%.
    Bank of Canada Governor Tiff Macklem will speak by
videoconference at the Federal Reserve Bank of Kansas City's
2020 Jackson Hole Symposium on Thursday, while gross domestic
product data for the second quarter is due on Friday.

 (Reporting by Fergal Smith; Editing by Will Dunham)
  
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