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CANADA FX DEBT-Loonie steadies as global risk sentiment improves

By Levent Uslu

* Canadian dollar trades nearly unchanged against the greenback * U.S. crude oil prices increase by more than 1% * Canadian bond yields rise broadly By Levent Uslu TORONTO, Aug 19 (Reuters) - The Canadian dollar steadied against its U.S. counterpart on Monday, after a week of losing some ground, as risk appetite gradually returned to global markets. U.S. stocks opened higher on Monday as signs of an interest rate reform in China bolstered hopes that major economies would act to stave off the slowing economic effects of escalating global trade tensions. Canada exports many commodities, including oil, so its currency tends to benefit from the bullish signal that rising stocks sends about the outlook for the global economy. At 9:25 a.m. (1325 GMT), the Canadian dollar was trading nearly unchanged at C$1.3260 to the greenback, or 75.41 U.S. cents. The currency, which last Thursday touched its weakest intraday level since Aug. 7 at C$1.3339, was trading in a range of C$1.3251 to C$1.3277. Meanwhile, the price of oil rose following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs of progress in U.S.-China trade negotiations. U.S. crude oil futures were up 1.9% at $55.91 a barrel. Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year climbed 1.8 basis points to yield 1.354% and the benchmark 10-year rose 2.6 basis points to yield 1.188%. On Thursday, the 10-year yield touched its lowest level since October 2016 at 1.083%. (Reporting by Levent Uslu Editing by Nick Zieminski )