CANADA FX DEBT-C$ pulls back from 10-month high as oil prices fall

    * Canadian dollar at C$1.2967, or 77.12 U.S. cents
    * Bond prices higher across the yield curve
    * 2-year yield posts its highest since October 2014

    TORONTO, July 5 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Wednesday, pulling back from a
nearly 10-month high the day before, as oil prices fell and
attention moved to minutes from the U.S. Federal Reserve's last
    Oil prices ended their longest bull run in more than five
years, as climbing Organization of the Petroleum Exporting
Countries' exports and a stronger dollar turned sentiment more
    U.S. crude        prices were down 1.04 percent at $46.58 a
    The U.S. dollar        rose against a basket of major
currencies ahead of the Fed minutes. U.S. manufacturing data on
Monday had boosted expectations the Fed would raise interest
rates again this year.
    At 9:24 a.m. ET (1324 GMT), the Canadian dollar          was
trading at C$1.2967 to the greenback, or 77.12 U.S. cents, down
0.2 percent.
    The currency traded in a range of C$1.2930 to C$1.2975.
    On Tuesday, the loonie touched its strongest since September
at C$1.2912 as Bank of Canada Governor Stephen Poloz added more
support to the view the central bank will raise interest rates
as early as next week.             
    Chances of a rate hike on July 12 have increased to nearly
80 percent from less than 5 percent before top Bank of Canada
officials asserted in June that a pair of 2015 interest rate
cuts had done their job in cushioning the economy from
collapsing oil prices, data from the overnight index swaps
market shows.             
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 3 Canadian cents to yield
1.123 percent and the 10-year             rising 18 Canadian
cents to yield 1.818 percent.
    Earlier in the session, the 2-year yield reached its highest
since October 2014 at 1.143 percent.
    Canada's trade data for May is due on Thursday and the June
employment report is due on Friday.         

 (Reporting by Fergal Smith; Editing by Jonathan Oatis)