CANADA FX DEBT-C$ weakens, paring recent gains, as crude oil prices fall

* Canadian dollar at C$1.3306, or 75.15 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, March 10 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as crude oil prices
fell, with the currency pulling back from a nearly four-month
high reached on Wednesday.
    Oil prices fell after hitting three-month highs this week,
with analysts warning that larger gains would be unwarranted as
refineries enter seasonal maintenance and a global glut weighs.
    U.S. crude prices were down 1.4 percent to $37.76 a
    The Canadian dollar fluctuated against other major
currencies after the European Central Bank unveiled a raft of
measures to stimulate growth and inflation in the euro zone, but
ECB President Mario Draghi said he did not think it will be
necessary to cut rates further.  
    On Wednesday, the Bank of Canada held its policy interest
rate steady at 0.50 percent, citing lower market volatility and
stronger non-energy exports as it waits to assess the impact of
government stimulus due to be unveiled in the March 22 budget.
    Markets had anticipated some pushback from the central bank
against recent strengthening of the Canadian dollar. The
currency has rebounded more than 10 percent since hitting a
12-year low of C$1.4689 on Jan. 20.
    Too sharp a rally could hinder a pickup in exports that
appears to be under way.
    At 9:41 a.m. EST (1441 GMT), the Canadian dollar 
was trading at C$1.3306 to the greenback, or 75.15 U.S. cents,
weaker than Wednesday's close of C$1.3250, or 75.47 U.S. cents.
    The currency's strongest level of the session was C$1.3232,
while its weakest was C$1.3317.
    On Wednesday, the loonie touched its strongest since Nov. 12
at C$1.3230.
    In domestic data, industrial production capacity fell 0.5
percentage points to 81.1 percent in the fourth quarter, while
new home prices rose 0.1 percent in January. 
    Canadian government bond prices were lower across the
maturity curve, with the two-year down 4 Canadian
cents to yield 0.548 percent and the benchmark 10-year
 falling 25 Canadian cents to yield 1.275 percent.
    The Canada-U.S. 10-year spread were 3.8 basis points less
negative at -60.6 basis points as Canadian government bonds
    Bank of Canada Governor Stephen Poloz will make introductory
remarks at the Canadian Institute for Advanced Research in
Ottawa at 4:15 p.m. EST (2115 GMT).
    Canada's employment report on Friday is expected to show the
economy added 9,000 jobs in February after losing more than
5,000 the month before. 

 (Reporting by Fergal Smith; Editing by Lisa Von Ahn)