CANADA FX DEBT-C$ strengthens slightly, supported by higher oil prices

* Canadian dollar at C$1.3110, or 76.28 U.S. cents
    * Bond prices higher across the maturity curve

    TORONTO, Oct 3 (Reuters) - The Canadian dollar strengthened
slightly against its U.S. counterpart on Monday as U.S. crude
oil prices climbed to their highest intraday level in nearly
three months before some gains were pared.
    U.S. crude prices were up 0.08 percent at $48.28 a
barrel, supported by a planned production cut by the
Organization of Petroleum Exporting Countries, although analysts
cautioned the persistent supply overhang could temper a
longer-lasting rally. 
    Modest gains for the loonie follow data on Friday that
showed Canada's economy got off to a stronger-than-expected
start in the third quarter. 
    At 9:43 a.m. EDT (1343 GMT), the Canadian dollar 
was trading at C$1.3110 to the greenback, or 76.28 U.S. cents,
slightly stronger than Friday's close of C$1.3117, or 76.24 U.S.
    The currency's strongest level of the session was C$1.3068,
while its weakest was C$1.3137.
    Speculators have turned bearish on the Canadian dollar,
Commodity Futures Trading Commission data showed on Friday. Net
short Canadian dollar positions stood at 11,615 contracts in the
week ended Sept. 27, having swung from net long 16,303 contracts
in the prior week. 
    The Canadian government is expected on Monday to roll out
new measures aimed at slowing foreign investment in the
country's major housing markets. 
    Canadian government bond prices were higher across the yield
curve, with the two-year up 0.5 Canadian cent to
yield 0.519 percent and the benchmark 10-year rising
12 Canadian cents to yield 0.984 percent.
    The 2-year yield fell 1.9 basis points further below its
U.S. equivalent to leave the spread at -26 basis points, its
largest gap since June 8.
    Canada's international merchandise trade report for August
is due on Wednesday. Investors will be looking to see if exports
can maintain the previous month's strength. The September
employment report is due on Friday. 

 (Reporting by Fergal Smith; Editing by Lisa Von Ahn)