CANADA FX DEBT-C$ steadies as oil rises, equities dip

* Canadian dollar at C$1.2897, or 77.54 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, Sept 8 (Reuters) - The risk-sensitive Canadian
dollar was little changed against its U.S. counterpart on
Thursday as oil prices rose and equity markets dipped.
    The loonie's steady performance follows a retreat from a
nearly three-week high on Wednesday after a more dovish than
expected statement from the Bank of Canada. 
    Bank of Canada Deputy Governor Timothy Lane will give a
presentation on the topic "Committed to a better Canada: the
Bank of Canada's role in challenging economic times."
    The deputy governor's appearance may be more closely
monitored by investors after the central bank revealed a more
dovish stance. The central bank will release his prepared
remarks at 12:10 p.m. EDT.
    Losses for European and U.S. stocks  came
after the European Central Bank kept its already loose policy
stance unchanged. 
    Oil prices rose after U.S. industry data showed a large
drawdown in crude stocks, reflecting the impact of an Atlantic
storm. U.S. crude prices were up 2.07 percent to $46.44 a
    Oil is one of Canada's major exports.
    At 9:42 a.m. EDT (1342 GMT), the Canadian dollar 
was trading at C$1.2897 to the greenback, or 77.54 U.S. cents,
slightly stronger than Wednesday's close of C$1.2900, or 77.52
U.S. cents.
    The currency's strongest level of the session was C$1.2852,
while its weakest was C$1.2918.
    The value of Canadian building permits issued in July rose
by 0.8 percent from June, led by authorizations to construct
non-residential buildings, Statistics Canada said. The increase
was less than the 3.0 percent month-on-month advance predicted
by analysts in a Reuters poll. 
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries and German Bunds. The
two-year bond dipped 1.5 Canadian cents to yield
0.553 percent and the benchmark 10-year declined 28
Canadian cents to yield 1.034 percent.
    Canada's August employment report is due on Friday.
Investors will be looking to see whether the labor market can
recover some of the 31,200 jobs it unexpectedly lost the month

 (Reporting by Fergal Smith; Editing by Chizu Nomiyama)