CANADA FX DEBT-C$ bounces off 1-week high
* C$ slips to $1.0114
* Bond prices mildly softer
TORONTO, Feb 14 (Reuters) - The Canadian dollar slipped from its highest level in more than a week against the U.S. currency on Monday, but was a relative outperformer as the euro sold off on concerns about the restructuring of a German bank.
At 8:22 a.m. (1522 GMT), the currency CAD=D4 was at C$0.9887 to the U.S. dollar, or $1.0114, down from Friday's North American session close at C$0.9868 to the U.S. dollar, or $1.0134.
It managed to rise as high as C$0.9850 to the U.S. dollar, or $1.0152, but bounced off its highest level since Feb. 4, as investors were put on edge by the euro's fall.
The euro slipped to a three-week low against the U.S. dollar, hit by reports that rescue plans for ailing lender WestLB were under threat, and with euro zone peripheral debt concerns keeping investors on edge. [FRX/]
Meanwhile, the price of oil, often a key sentiment indicator for the the commodity-driven Canadian currency, was slightly softer on the day.
"The drop in oil prices hasn't seemed to be hurting the Canadian dollar at all, which is probably offset by selling of euro/Cad... which could give the Canadian dollar a bit of support," said Michael O'Neill, managing director at Knightsbridge Foreign Exchange.
O'Neill said the technicals on the Canadian dollar were still bullish, saying another test of C$0.9850 area was possible. If broken, he said he was eying C$0.9830, which is two ticks firmer than the 2011 high. He put U.S. dollar resistance at C$0.9890.
But with without any economic releases due on Monday, the Canadian dollar could remain hemmed in this range, he said.
Canadian government bonds were mildly weaker, with world stocks inching towards last week's 30-month high.
The two-year Canadian government bond CA2YT=RR was off 5 Canadian cents to yield 1.932 percent, while the 10-year bond CA10YT=RR fell 8 Canadian cents to yield 3.482 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)
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