CANADA FX DEBT-C$ hits 6-year lows as greenback firms, oil weighs

* Canadian dollar at C$1.3041 or 76.68 U.S. cents
    * Bond prices mixed across the maturity curve

    TORONTO, July 22 (Reuters) - The Canadian dollar resumed its
decline against the greenback on Wednesday after a brief
reprieve the previous session, softening to more than six-year
lows as the U.S. dollar firmed against a basket of key
currencies and oil prices remained under pressure.
    Prices for oil, a key Canadian export, failed to hold on to
Tuesday's gains, and at one point fell below $50 a barrel
following an unexpected rise in U.S. crude stockpiles. The rise
added to the world oversupply that has sent crude prices
tumbling over the past year.
    Many market participants expect the loonie to weaken further
against the U.S. dollar this year, particularly as the U.S.
Federal Reserve prepares to resume raising interest rates,
possibly in September.
    * At 9:57 a.m. EDT (1357 GMT), the Canadian dollar,
which was weaker than most of its key currency counterparts, was
at C$1.3041 to the U.S. dollar, or 76.68 U.S. cents, weaker than
the Bank of Canada's official close of C$1.2948, or 77.23 U.S.
cents, on Tuesday.
    * The currency's weakest trade was C$1.3046. Currency
players are eyeing the C$1.3063/66 level, last hit on March 9,
2009, which was Canadian dollar's weakest level since 2004.
    * Canadian retail sales figures for May are due at 8:30 a.m.
EDT (1230 GMT) on Thursday. Economists are expecting an increase
of 0.5 percent. 
    * U.S. crude prices were down 1.55 percent at $50.07,
while Brent crude lost 1.19 percent to $56.36. 
    * Canadian government bond prices were mixed across the
maturity curve, with the two-year price down 0.5
Canadian cent to yield 0.43 percent and the benchmark 10-year
 rising 19 Canadian cents to yield 1.541 percent.
    * The Canada-U.S. two-year bond spread was -26.4 basis
points, while the 10-year spread was -78.7 basis points.

 (Reporting by Solarina Ho; Editing by Peter Galloway)