(Adds details throughout, updates prices)
    * Canadian dollar weakens 0.2% against the greenback
    * Loonie touches its strongest level since March 19 at
1.2471
    * Canada forecasts a budget deficit of C$154.7 billion in
2021-22
    * Canada's 30-year yield touches a one-month high at 2.071% 

    By Fergal Smith
    TORONTO, April 19 (Reuters) - The Canadian dollar weakened
on Monday against its U.S. counterpart, pulling back from an
earlier one-month high, and bond yields rose as Canada's
government lined up billions in new spending and said it would
issue more long-term debt.
    The loonie        weakened 0.2% to 1.2532 to the greenback,
or 79.80 U.S. cents, having touched its strongest intraday level
since March 19 at 1.2471.
    Canada's budget deficit is forecast to hit C$154.7 billion
in the fiscal year ending next March, as Ottawa spends heavily
to counter a third wave of COVID-19 infections and plans to
bolster the economic recovery, the finance department said.
            
    The share of bond issuance with a maturity of 10 years or
greater is set to rise to 42% in the fiscal year ending next
March from 29% the prior year. It was 15% before the crisis.
            
    Investors were also looking ahead to a Bank of Canada
interest rate decision on Wednesday. Analysts expect the central
bank to announce it is cutting bond purchases from the current
pace of C$4 billion per week.             
    The price of oil, one of Canada's major exports, was
supported by a weaker U.S. dollar but gains were capped by
concerns about the impact on demand from rising coronavirus
cases in India. U.S. crude        prices settled 0.4% higher at
$63.38 a barrel.             
    Canadian government bond yields were higher across a steeper
curve. The 30-year             touched its highest since March
19 at 2.071% before dipping to 2.062%, up 7.7 basis points on
the day.

 (Reporting by Fergal Smith
Editing by Chizu Nomiyama and Grant McCool)