CANADA FX DEBT - Canadian dollar weakens, benchmark yield climbs

The Canadian dollar weakened against the greenback on Tuesday, and the yield on benchmark government debt climbed.

The loonie CAD= was trading 0.2% lower at C$1.3896 to the greenback, or 71.96 U.S. cents, after trading in a range of 1.3851 to 1.3915.

Canadian government 10-year bond yields CA10YT=RR rose 0.5 basis points to 3.128%. The yield on similar U.S. government benchmark debt rose to 4.3953%.

U.S. May crude CLc1 futures fell 45 cents to $61.08 a barrel on Tuesday.

Canadian factory sales fell 0.2% in February from the previous month, Statistics Canada said. Analysts polled by Reuters had expected factory sales to drop 0.2%.

Canadian housing starts in Marchfell more than expected to 214,200 units from a revised 221,400 units the previous month, the Canadian Mortgage and Housing Corporation (CMHC) said.

A survey of 12 economists polled by Reuters had forecast March housing starts rising to 242.5,000 units.

Canada's annual inflation rate eased to 2.3% in March, down from 2.6% in February, Statistics Canada said. Analysts polled by Reuters had expected an annual rate of 2.6%