* Canadian dollar up 0.1% against the greenback
* Loonie touches its strongest level since April 2018 at 1.2551
* Price of U.S. oil increases 1.3%
* Canadian bond yields rise across a steeper curve
TORONTO, Feb 24 (Reuters) - The Canadian dollar strengthened to its highest in nearly three years against its U.S. counterpart on Wednesday, as oil prices rose and Canadian bond yields climbed at a faster pace than their U.S. counterparts.
The loonie CAD= was trading 0.1% higher at 1.2580 to the greenback, or 79.49 U.S. cents, having touched its strongest intraday level since April 2018 at 1.2551.
Global shares .WORLD fell as market participants weighed up signs of economic recovery against fears of inflation. price of oil, one of Canada's major exports, rose amid continued outages in the United States but a surprise build in U.S. inventories last week capped gains. U.S. crude CLc1 prices were up 1.3% at $62.46 a barrel.
Canada's economy will see a solid and sustained rebound this year as inoculations ramp up, Bank of Canada governor Tiff Macklem said on Tuesday, while warning that Canada's red-hot housing market is starting to show signs of "excess exuberance". on Tuesday, U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau sought to turn the page on the Trump era, stressing the countries' deep ties and pledging to work together to counteract Chinese influence and address climate change. government bond yields were higher across a steeper curve on Wednesday. The 10-year yield CA10YT=RR touched its highest since February last year at 1.356% before dipping to 1.333%, up 8.8 basis points on the day.
The gap between Canadian and U.S. 10-year yields narrowed by nearly 4 basis points to 8 basis points in favour of the U.S. bond.