CANADA FX DEBT-C$ weakens vs firm greenback, higher oil limits loonie's losses

* Canadian dollar at C$1.3143, or 76.09 U.S. cents
    * Bond prices mixed across the maturity curve

    TORONTO, Oct 4 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as the greenback made
broad-based gains, although losses for the loonie were
restrained as oil rose to a nearly 3-month high.
    U.S. crude prices were up 0.29 percent at $48.95 a
barrel despite news that Iran and Libya have continued to
increase production. Gains for oil follow an agreement last week
by the Organization of Petroleum Exporting Countries to freeze
output levels in a bid to stem a two-year price rout. 
    The U.S. dollar rose against a basket of major
currencies as investors raised bets on a Federal Reserve
interest rate hike by the end of the year. 
    At 9:38 a.m. EDT (1338 GMT), the Canadian dollar 
was trading at C$1.3143 to the greenback, or 76.09 U.S. cents,
weaker than Monday's close of $1.3110, or 76.28 U.S. cents.
    The currency's strongest level of the session was C$1.3114,
while its weakest was C$1.3174.
    Total Canadian auto sales were down 0.5 percent versus the
prior month, with a sharp fall in passenger car sales offset by
more light truck sales, industry analyst Dennis DesRosiers wrote
on Monday. 
    Canadian government bond prices were mixed across the yield
curve, with the two-year up 0.5 Canadian cent to
yield 0.536 percent and the benchmark 10-year 
falling 5 Canadian cents to yield 1.021 percent.
    Earlier on Tuesday, the 10-year yield touched its highest in
more than one week at 1.068 percent.
    Canada's international merchandise trade report for August
is due on Wednesday. Investors will be looking to see if exports
were as strong as in the previous month. The September
employment report is due on Friday.   

 (Reporting by Fergal Smith; Editing by Chris Reese)