CANADA FX DEBT - Canadian dollar strengthens, benchmark yield climbs

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

The loonie CAD= was trading 0.2% higher at C$1.3705 to the greenback, or 72.97 U.S. cents, after trading in a range of 1.3707 to 1.3738.

Canadian government 10-year bond yields CA10YT=RR rose 2.5 basis points to 3.304%. The yield on similar U.S. government benchmark debt rose to 4.3515%.

U.S. August crude CLc1 futures fell $2.69 to $65.82 a barrel on Tuesday.

Canada's annual inflation rate remained at 1.7% in May, holding steady from 1.7% in April, Statistics Canada said. Analysts polled by Reuters had expected an annual rate of 1.7%