CANADA FX DEBT-Canadian dollar lags G10 peers as bets mount against the currency

 (Adds strategist quotes and details throughout, updates prices)
    * Canadian dollar falls 0.4% against the greenback
    * Loonie touches its strongest intraday since Jan. 24 at
    * Price of U.S. oil settles 0.7% higher
    * Canadian bond yields rise across much of a steeper curve

    By Fergal Smith
    TORONTO, Aug 24 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart and all the other G10 currencies on
Monday, as recent data showed that speculators have added to
bearish bets on the loonie despite it climbing to a seven-month
    The loonie        was trading 0.4% lower at 1.3226 to the
greenback, or 75.61 U.S. cents. Earlier in the day, the currency
touched its strongest intraday level since Jan. 24 at 1.3130.   
    "The Canadian dollar is broadly underperforming, which
rather tells you that the dislike for the Canadian dollar that
we seem to be seeing pretty consistently from the FX market is
still there," said Shaun Osborne, chief currency strategist at
    Speculators have raised bearish bets on the loonie to the
highest since May, data from the U.S. Commodity Futures Trading
Commission showed on Friday.
    "At some point we will see either a capitulation, or short
squeeze from the CAD bears, or the CAD is going to go quite
significantly lower," Osborne said.
    U.S. crude oil futures        settled 0.7% higher at $42.62
as storms headed for the Gulf of Mexico shut more than half of
the region's offshore production, with the more dangerous of the
two storms expected to strike later in the week.             
    Canada is a major exporter of oil, as well as other
commodities including lumber. The country largely won a case
before the World Trade Organization in a long-running dispute
with the United States over U.S. duties imposed on its softwood
lumber exports.              
    The Bank of Canada is asking Canadians for the first time to
provide feedback on the inflation targeting framework it uses to
set monetary policy, the central bank said.             
    Canadian government bond yields were higher across much of a
steeper curve on Monday, with the 10-year             up 2.2
basis points at 0.560%. 

 (Reporting by Fergal Smith; Editing by Will Dunham)