CANADA FX DEBT-C$ posts 10-day high as oil climbs, greenback falls

    * Canadian dollar at C$1.3044, or 76.66 U.S. cents
    * Loonie touches its strongest since Feb. 6 at C$1.3010
    * Bond prices higher across the yield curve

    TORONTO, Feb 16 (Reuters) - The Canadian dollar strengthened
to a 10-day high against its U.S. counterpart on Thursday as oil
prices rose and the greenback pared recent gains against a
basket of major currencies.
    The U.S. dollar        broke an 11-day winning streak even
as a measure of U.S. business conditions jumped to its highest
since 1984.              Rising chances of a Federal Reserve
interest rate hike as soon as March had supported the greenback
this week. 
    Prices of oil, one of Canada's major exports, rose after
Organization of the Petroleum Exporting Countries sources said
the group could extend its supply reduction pact with
non-members and might even apply deeper cuts if global crude
inventories failed to drop to a targeted level.      
    U.S. crude        prices were up 0.72 percent at $53.49 a
    At 9:21 a.m. ET (1421 GMT), the Canadian dollar          was
trading at C$1.3044 to the greenback, or 76.66 U.S. cents,
stronger than Wednesday's close of C$1.3075, or 76.48 U.S.
    The currency's weakest level of the session was C$1.3080,
while it touched its strongest since Feb. 6 at C$1.3010.
    Gains for the loonie came one day after domestic data showed
a jump in manufacturing sales volumes that boded well for
fourth-quarter economic growth.
    On Monday, U.S. President Donald Trump said he only wants to
tweak trade ties with Canada, tempering investor concerns about
the county's trade outlook.
    Canada sends 75 percent of its exports to the United States,
but took a step on Wednesday toward reducing reliance on its
southern neighbor with the passage of the Comprehensive Economic
and Trade Agreement, a trade deal between Canada and the EU.
    Canadian government bond prices rose across the yield curve
in sympathy with U.S. Treasuries. The two-year            edged
up 2 Canadian cents to yield 0.806 percent and the 10-year
            firmed 14 Canadian cents to yield 1.766 percent.
    On Wednesday, the 10-year yield touched a two-week high at
1.801 percent.

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)