CANADA FX DEBT-C$ rebounds as Wall Street mulls potential for negative rates

    * Canadian dollar rises 0.3% against the greenback
    * Loonie touches its weakest intraday since May 7 at 1.4085
    * Price of U.S. oil decreases 0.4%
    * Canadian bond yields edge lower across the curve

    TORONTO, May 13 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Wednesday, rebounding from a
near one-week low earlier in the session as investors turned
more bullish ahead of comments by U.S. Federal Reserve Chairman
Jerome Powell.
    U.S. stock index futures rose, a day after Wall Street's
main indexes fell, with Powell set to speak amid rising bets
that the United States might adopt negative interest rates for
the first time to combat the coronavirus pandemic's severe
economic blow.             
    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 0.4% at $25.67 a barrel.
Potential OPEC+ plans to deepen supply cuts were tempered by
demand concerns exacerbated by a possible second wave of
coronavirus infections as countries ease lockdowns.             
    The Canadian dollar          was trading 0.3% higher at
1.4026 to the greenback, or 71.30 U.S. cents. The currency
touched its weakest intraday level since last Thursday at
    The Canada-U.S. border is expected to stay closed to
non-essential travel until June 21 amid the ongoing novel
coronavirus pandemic, according to a report in a widely read
Canadian newspaper.             
    Canadian government bond yields edged lower across the curve
in sympathy with U.S. Treasuries. The 10-year yield            
dipped nearly 1 basis point to 0.536%.       

 (Reporting by Fergal Smith
Editing by Nick Zieminski)

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