* C$ at C$1.0380 vs US$, or 96.34 U.S. cents * C$ weakens to multi-month lows against Aussie and New Zealand dollars * Bond prices mostly lower across curve By Solarina Ho TORONTO, Oct 15 (Reuters) - The Canadian dollar was weaker against its U.S. counterpart on Tuesday as talks between Washington lawmakers over raising the U.S. debt ceiling stalled just days ahead of when the U.S. Treasury says the government will reach its borrowing limit. The Senate halted discussions on its own plan, as it waited for the fractious Republican-controlled House of Representatives to come up with an alternative proposal before Oct. 17, when the government is expected to reach its limit of $16.7 trillion. The U.S. government shutdown and any economic impact from defaulting would not bode well for Canada, whose largest trading partner is the United States. "It's really hard to trace a lot of flows, there's really not a lot of risk from people on the table ... there's too much uncertainty and we're just waiting for stuff to clear in Washington," said Darcy Browne, Managing Director at Capital Markets Trading, CIBC. "Dollar/Canada's really kind of smack in the middle of the range and unattractive. There just hasn't been a story there." The Canadian dollar finished its North American session at C$1.0380 versus the greenback, or 96.34 U.S. cents, softer than Monday's Thanksgiving holiday close at C$1.0349, or 96.63 U.S. cents. The Canadian dollar's performance was mostly weaker against other key currencies. It touched multi-month lows against its commodities sister currencies, hitting its softest level against the Australian dollar since early June and its weakest level against the New Zealand dollar since late April. Domestically, Sales of existing homes in Canada jumped in September from a year ago and prices rose, though analysts cautioned the gains came partly on the back of depressed activity in 2012 that followed tighter mortgage rules. Figures from the Teranet-National Bank Composite House Price Index showed Canadian home prices were unchanged in September after hitting a record high the month before, suggesting the housing market is cooling. Government bond prices were mostly lower across the maturity curve, with the two year bond off 44 Canadian cents to yield of 1.231 percent and the benchmark 10-year bond falling 45 Canadian cents to yield 2.649 percent.