CANADA FX DEBT-C$ edges higher against firmer greenback as oil stabilizes

    * Canadian dollar at C$1.3495, or 74.10 U.S. cents
    * Bond prices lower across a steeper yield curve

    TORONTO, June 1 (Reuters) - The Canadian dollar edged higher
against its broadly firmer U.S. counterpart on Thursday as the
price of oil, one of Canada's major exports, stabilized after a
sharp loss the day before.
    U.S. crude        prices were up 0.02 percent to $48.33 a
barrel after having hit a nearly three-week low on Wednesday.
    U.S. industry data showed a big drop in crude stocks last
week. But the market remains suspicious whether Organization of
the Petroleum Exporting Countries cuts will be enough to
rebalance an oversupplied market.             
    The U.S. dollar        rose against a basket of major
currencies, helped by a report that showed U.S. private
employers added 253,000 jobs in May.
    At 10:09 a.m. ET (1409 GMT), the Canadian dollar         
was trading at C$1.3495 to the greenback, or 74.10 U.S. cents,
up 0.1 percent.
    The currency traded in a narrow range of C$1.3478 to
    The slight gains for the Canadian dollar comes after data on
Wednesday showed that Canada's economy accelerated in the first
quarter on the back of strong consumer spending and a business
investment rebound.             
    The currency is expected to dip in the short term but
stabilize in 12 months, a Reuters poll showed, as a
strengthening domestic economy encourages the Bank of Canada to
prepare the market for interest rate hikes.              
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries after the U.S.
private payroll report.
    The two-year            fell 4 Canadian cents to yield 0.716
percent and the 10-year             declined 29 Canadian cents
to yield 1.448 percent.
    Canada's trade data for April is due on Friday.    

 (Reporting by Fergal Smith; Editing by Nick Zieminski)