* Canadian dollar at C$1.3438, or 74.42 U.S. cents
* Bond prices fall across maturity curve
TORONTO, April 19 The Canadian dollar extended
losses against its U.S. counterpart on Wednesday, hitting its
weakest level in almost two weeks even as oil prices steadied
and bond yields rose.
At 9:13 a.m. EDT (1313 GMT), the Canadian dollar
was trading at C$1.3438 to the greenback, or 74.42 U.S. cents,
weaker than the Bank of Canada's official Tuesday close of
C$1.3381, or 74.73 U.S. cents.
"The recent support provided by both of CAD's key drivers
appears to be eroding amid signs of a broader turn in oil prices
and an apparent halt in the recent (CAD-supportive) narrowing in
yield spreads," Scotiabank strategists wrote in a note.
The currency's strongest level of the session was C$1.3376,
while its weakest level was C$1.3443.
Oil edged higher on Wednesday as OPEC said it was committed
to eroding a global surplus of crude, but increasing shale
production in the United States and still-high global stocks
threatened to pull prices lower.
The Canadian dollar was underperforming a string of European
currencies but recovered some recent losses against the Japanese
Canadian government bond prices were lower across the
maturity curve, with the price of the two-year down 2
Canadian cents to yield 0.709 percent and the benchmark 10-year
falling 25 Canadian cents to yield 1.459 percent.
The Canada-U.S. two-year bond spread was -47.6 basis points,
while the 10-year spread was -74.6 basis points.
(Reporting by Alastair Sharp; Editing by Paul Simao)