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CANADA FX DEBT-Canadian dollar hits a 5-week low as risk aversion climbs

    * Canadian dollar weakens 0.4% against the greenback
    * Loonie touches its weakest since Aug. 14 at 1.3264
    * Canadian new house prices rise 2.1% year-over-year in
August
    * Canadian bond yields ease across a flatter curve

    TORONTO, Sept 21 (Reuters) - The Canadian dollar weakened to
a five-week low against its U.S. counterpart on Monday as rising
coronavirus infections weighed on investor sentiment, while
domestic data showed new house prices increasing at the fastest
annual rate in more than two years. 
    Global shares          fell as renewed lockdown measures in
some countries due to the spread of the virus cast doubt over
economic recovery.             
    Canada runs a current account deficit and is a major
producer of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. crude        prices were down 2.4% at $40.12 a barrel,
pressured by the possible return of Libyan production and as
rising COVID-19 cases stoked worries about global demand.
    The Canadian dollar        was trading 0.4% lower at 1.3254
to the greenback, or 75.45 U.S. cents. The currency touched its
weakest intraday level since Aug. 14 at 1.3264.
    Canada has also seen a rise in coronavirus infections. On
Saturday, Ontario, the country's most-populous province, cracked
down on private social gatherings.             
    Still, speculators have cut their bearish bets on the
Canadian dollar for the fourth straight week, data from the U.S.
Commodity Futures Trading Commission showed on Friday. As of
Sept. 15, net short positions had fallen to 16,943 contracts 
from 17,355 in the prior week.
    Canadian new house prices rose 2.1% year-over-year in
August, which was the largest increase since March 2018,
Statistics Canada said.       
    Canadian government bond yields were lower across a flatter
curve in sympathy with U.S. Treasuries on Monday. The 10-year
            fell 3.7 basis points to 0.544%.
    Canadian Prime Minister Justin Trudeau is scheduled to
unveil on Wednesday what he says is a bold far-reaching plan to
help Canada recover from the coronavirus pandemic.

 (Reporting by Fergal Smith; Editing by Will Dunham)
  
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