November 28, 2017 / 2:42 PM / in 20 days

CANADA FX DEBT-C$ hits 1-week low as oil dips ahead of Poloz remarks

    * Canadian dollar at C$1.2792, or 78.17 U.S. cents
    * Loonie hit weakest since Nov. 21 at C$1.2808
    * Bond prices higher across the yield curve
    * 10-yr yield hits lowest since Aug. 30 at 1.832 pct

    TORONTO, Nov 28 (Reuters) - The Canadian dollar weakened to
a one-week low against its U.S. counterpart on Tuesday as oil
prices fell, ahead of the release by the Bank of Canada of an
assessment of vulnerabilities and risks in the country's
financial system.
    At 9:25 a.m. ET (1425 GMT), the Canadian dollar          was
trading at C$1.2792 to the greenback, or 78.17 U.S. cents, down
0.2 percent.
    The currency's strongest level of the session was C$1.2756,
while it touched its weakest since Nov. 21 at C$1.2808.   
    The price of oil, one of Canada's major exports, fell on
uncertainty over the outcome of a key Organization of the
Petroleum Exporting Countries meeting this week.             
    U.S. crude        prices fell 0.31 percent to $57.93 a
barrel. 
    The Bank of Canada is due to release its semi-annual
Financial System Review at 10:30 a.m. ET (1530 GMT).
    Investors will peruse comments by Bank of Canada Governor
Stephen Poloz for clues on the prospects for further interest
rate hikes after weak retail sales data last week.
    The central bank raised rates in July and September for the
first time in seven years but has since turned more cautious on
the outlook for the economy.    
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 4 Canadian cents to yield
1.419 percent and the 10-year             rising 38 Canadian
cents to yield 1.843 percent.
    The 10-year yield touched its lowest since Aug. 30 at 1.832
percent, while the gap between the 10-year yield and its U.S.
equivalent widened by 3.9 basis points to a spread of -47.8
basis points.
    Data will be released Friday on Canada's jobs for November
and gross domestic product for the quarter.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  

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