CANADA FX DEBT-C$ slips vs stronger greenback; BoC rate decision due Wednesday

    * Canadian dollar at C$1.3130, or 76.16 U.S. cents
    * Price of U.S. oil rises 0.7 percent
    * Bond prices lower across the yield curve
    * Canada's 2-year yield touches a six-week high at 1.959

    TORONTO, July 10 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as the greenback climbed
broadly, while investors braced for a potential Bank of Canada
interest rate hike on Wednesday.
    The U.S. dollar        neared a six-month high against the
Japanese yen as investors bought riskier assets, encouraged by
signs that trade tensions have yet to hurt economic momentum.
    Canada exports many commodities, including oil, and runs a
current account deficit so its economy could also be hurt if the
flow of trade or capital slows.
    Money markets expect the Bank of Canada to raise its
benchmark interest rate on Wednesday for the fourth time since
last summer, from a current 1.25 percent.                
    At 9:12 a.m. EDT (1312 GMT), the Canadian dollar         
was trading 0.2 percent lower at C$1.3130 to the greenback, or
76.16 U.S. cents.
    The currency, which on Monday touched its strongest intraday
level in nearly four weeks at C$1.3066, traded in a range of
C$1.3103 to C$1.3146.
    Speculators have raised bearish bets on the Canadian dollar
to the most since June 2017, data from the U.S. Commodity
Futures Trading Commission and Reuters calculations showed on
Monday. As of July 3, net short positions had increased to
49,448 contracts from 32,799 a week earlier.
    The value of Canadian building permits rose 4.7 percent in
May from April, reversing the decline of the prior month, as
strong intentions to build houses outweighed weakness in the
non-residential sector, Statistics Canada said.             
    Separate data from the Canada Mortgage and Housing Corp 
showed that Canadian housing starts surged in June as
groundbreaking on multiple unit urban homes jumped 46.4 percent,
offsetting a small decline in single detached urban starts.
    The price of oil rose because of growing supply outages,
with Norway shutting one oilfield as hundreds of workers began a
strike and Libya saying its production more than halved in
recent months.             
    U.S. crude        prices were up 0.7 percent to $74.33 a
    Canadian government bond prices were lower across the yield
curve, with the two-year            down 1.5 Canadian cents to
yield 1.953 percent and the 10-year             falling 13
Canadian cents to yield 2.184 percent.
    The 2-year yield touched its highest intraday level since
May 25 at 1.959 percent.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)