CANADA FX DEBT-C$ weakens to a 12-day low as greenback climbs

    * Canadian dollar at C$1.3145, or 76.07 U.S. cents
    * Loonie touches a 12-day low at C$1.3164
    * Bond prices lower across the yield curve

    TORONTO, Feb 21 (Reuters) - The Canadian dollar weakened on
Tuesday to a 12-day low against its U.S. counterpart, whose
gains against a basket of major currencies offset higher prices
for oil, a major export for Canada.
    The greenback        climbed after two Federal Reserve
policymakers pointed to a potential U.S. interest rate increase
next month, turning attention to the bullish fundamentals of the
world's biggest economy.             
    U.S. crude        prices were up 2.3 percent at $54.63 a
barrel after the Organization of the Petroleum Exporting
Countries said it was sticking to its agreement to cut
production and hoped compliance with the deal would be even
    At 9:04 a.m. ET (1404 GMT), the Canadian dollar          was
trading at C$1.3145 to the greenback, or 76.07 U.S. cents,
weaker than Monday's close of C$1.3101, or 76.33 U.S. cents,
according to Reuters data.
    The currency's strongest level of the session was C$1.3100,
while it touched its weakest since Feb. 9 at C$1.3164.
    Monday was a market holiday in Canada. The Bank of Canada's
official close on Friday was C$1.3099, or 76.34 U.S. cents.
    Data on Monday showed that Canadian wholesale trade rose in
December for the third consecutive month. The 0.7 percent
increase was in line with economists' expectations.             
    Speculators increased bullish bets on the Canadian dollar to
the most since September, data from the Commodity Futures
Trading Commission and Reuters calculations showed on Friday.
Canadian dollar net long positions rose to 19,340 contracts as
of Feb. 14 from 8,550 a week earlier.                     
    Bank of Canada Senior Deputy Governor Carolyn Wilkins will
participate in a panel discussion on regulation in the financial
services sector at 11:30 a.m. EST (1630 GMT).
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries and German Bunds as
investors weighed upbeat euro zone data and the possibility of a
March rate hike by the Fed.
    The two-year            price fell 3 Canadian cents to yield
0.794 percent, and the 10-year             declined 35 Canadian
cents to yield 1.752 percent.
    Domestic retail sales data for December is due on Wednesday.
Economists expect it to be unchanged but to show a rise of 0.6
percent after excluding autos.         

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