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CANADA FX DEBT-Canadian dollar hits 6-week low as Wall Street tumbles

 (Adds dealer quotes and details throughout; updates prices)
    * Canadian dollar weakens 0.8% against the greenback
    * Loonie touches its weakest since Aug. 12 at 1.3320
    * Canadian new house prices rise 2.1% year-over-year in
August
    * Canadian bond yields ease across a flatter curve

    By Fergal Smith
    TORONTO, Sept 21 (Reuters) - The Canadian dollar fell to a
near six-week low against its broadly stronger U.S. counterpart
on Monday, as oil prices declined more than 4% and rising
coronavirus infections weighed on investor sentiment.
    The loonie        was trading 0.8% lower at 1.3310 to the
greenback, or 75.13 U.S. cents. The currency touched its weakest
intraday level since Aug. 12 at 1.3320.
    "The USD has caught a risk-off, safe-haven bid due to the
turbulence in the equity markets," said Tony Valente, a senior
FX dealer at AscendantFX. "It seems that equity markets haven’t
finished their September correction yet."
    Wall Street's main indexes slid to seven-week lows as
renewed lockdown measures in some countries due to the spread of
the virus cast doubt over economic recovery.             
    The sell-off in oil, one of Canada's major exports,
intensified pressure on the loonie, Valente said.
    U.S. crude oil futures        settled 4.4% lower at $39.31 a
barrel as rising coronavirus cases stoked worries about global
demand, while a potential return of Libyan production bolstered
oversupply fears.                 
    Canada has also seen a rise in coronavirus infections. On
Saturday, Ontario, the country's most-populous province, cracked
down on private social gatherings.             
    Canadian new house prices rose 2.1% year-over-year in
August, which was the largest increase since March 2018,
Statistics Canada said on Monday.       
    Canadian government bond yields were lower across a flatter
curve in sympathy with U.S. Treasuries. The 10-year            
fell 2.9 basis points to 0.552%.
    Canadian Prime Minister Justin Trudeau is scheduled to
unveil on Wednesday what he says is a far-reaching plan to help
Canada recover from the coronavirus pandemic.

 (Reporting by Fergal Smith; Editing by Will Dunham and Peter
Cooney)
  
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