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CANADA FX DEBT-C$ steadies against rebounding greenback as oil climbs

    * Canadian dollar trades near flat against the greenback
    * Canadian productivity rises 9.8% in the second quarter
    * Price of U.S. oil increases 0.5%
    * Canadian bond yields little changed across the curve

    By Fergal Smith
    TORONTO, Sept 2 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday as higher oil
prices offset broader gains for the greenback, with the loonie
steadying after it pulled back from a near eight-month high the
day before.
    The loonie        was trading nearly unchanged at 1.3065 to
the greenback, or 76.54 U.S. cents. The currency, which on
Tuesday posted its strongest intraday level since Jan. 8 at
1.2990, traded in a range of 1.3053 to 1.3084.
     The price of oil, one of Canada's major exports, was
supported by a report that U.S. crude inventories fell and as
surveys showing stronger manufacturing raised hopes of a
recovery from the coronavirus pandemic.             
    U.S. crude        prices were up 0.5% at $42.98 a barrel,
while the U.S. dollar        extended its rebound from a
two-year low against a basket of major currencies.             
    "Expect the CAD to generally track the broader tone of the
USD for now ... that might mean the CAD can regain a bit more
ground on the crosses," strategists at Scotiabank, including
Shaun Osborne, said in a note.
    Against the euro       , the Canadian dollar advanced about
0.4%, while it was up about 0.5% against the Australian dollar
      .
    Canadian labor productivity rose at a record pace in the
second quarter, climbing 9.8%, as hours worked fell at a much
faster pace than business output, Statistics Canada said.
            
    Canada's jobs report for August is due on Friday, which
could offer clues on the strength of economic recovery from the
coronavirus crisis. Data on Tuesday showed that Canadian
manufacturing activity accelerated in August to its fastest pace
in two years.
    Canadian government bond yields were little changed across
the curve on Wednesday, with the 10-year             flat at
0.577%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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