CANADA FX DEBT-Canadian dollar steadies as oil lifts BoC rate hike bets

* Canadian dollar trades in a range of 1.3668 to 1.3710

* BoC leaves key interest rate on hold at 2.25%

* Price of oil settles nearly 7% higher

* 2-year yield jumps 15.8 basis points to 3.038%

By Fergal Smith

TORONTO, April 29 (Reuters) - The Canadian dollar steadied against its U.S. counterpart on Wednesday as the greenback posted broad-based gains and a jump in oil prices raised prospects of multiple Bank of Canada interest rate hikes this year.

The loonie was trading nearly unchanged at 1.3685 per U.S. dollar, or 73.07 U.S. cents, after moving in a range of 1.3668 to 1.3710. The Bank of Canada kept its key interest rate unchanged at 2.25%, as expected. The bank said any changes in the rate could be small if its projections for the economy hold true, but if oil prices stayed high and began pushing up inflation, it might have to respond with consecutive rate hikes.

Investors were pricing in 59 basis points in tightening this year, up from 39 basis points before the policy decision, swap market data showed.

"Oil is driving the repricing in the rates curve," said Adam Button, chief currency analyst at investingLive. "The market is highly concerned that the U.S. is committed to a long-term blockade." U.S. President Donald Trump discussed how to mitigate the impact of a possible months-long U.S. blockade of Iran's ports with U.S. oil companies, a White House official said. The U.S. price of oil, one of Canada's major exports, settled nearly 7% higher at $106.88 a barrel as deadlocked U.S.-Iran negotiations made investors more concerned about prolonged disruptions to Middle Eastern supply. The U.S. dollar rose against a basket of major currencies as traders kept bets the Federal Reserve will not cut interest rates this year after the U.S. central bank kept short-term borrowing costs on hold and three dissented against its "easing bias."

Canadian government bond yields moved higher across the curve. The 2-year was up 15.8 basis points at 3.038%, marking its first move above 3% in more than one month. (Reporting by Fergal Smith Editing by Rod Nickel)