CANADA FX DEBT-C$ edges higher as oil prices and jobs climb

    * Canadian dollar at C$1.2604, or 79.34 U.S. cents
    * Bond prices lower across the yield curve
    * 10-year yield near two-month high at 2.316 percent

    TORONTO, April 19 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Thursday after hitting a
one-week low the day before, as oil prices climbed and data
showed a jump in domestic employment.
    The price of oil, one of Canada's major exports, rose to its
highest since late 2014 as U.S. crude inventories declined and
after sources told Reuters that top exporter Saudi Arabia aims
to push prices even higher.             
    U.S. crude        prices were up 0.7 percent at $68.97 a
    Canada added 42,800 jobs in March, led by hiring in the
construction industry, according to a report from ADP.
    At 9:24 a.m. EDT (1324 GMT), the Canadian dollar         
was trading 0.2 percent higher at C$1.2604 to the greenback, or
79.34 U.S. cents. The currency traded in a range of C$1.2587 to
    The loonie hit on Wednesday its lowest since April 10 at
C$1.2660 after the Bank of Canada left interest rates on hold
and said it did not know when or how aggressive it would need to
be to keep inflation in check.             
    Kinder Morgan Inc         said on Wednesday that recent
events confirmed an investment in the Trans Mountain pipeline
expansion may be "untenable" and said Ottawa's pledge of
financial support does not resolve political risk related to
British Columbia's opposition.             
    The Trans Mountain expansion is considered crucial for
Alberta's oil industry which has been beset by transportation
bottlenecks. The bottlenecks contributed to a discount for
Canadian crude to U.S. oil prices.
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 2 Canadian cents to yield 1.902 percent and the 10-year
            declined 22 Canadian cents to yield 2.316 percent.
    The 10-year yield reached its highest intraday since Feb. 22
at 2.316 percent. 
    Canadian inflation data for March and the February retail
sales report are due on Friday.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)