CANADA FX DEBT-C$ slips as global trade prospects, NAFTA talks weigh

    * Canadian dollar at C$1.2466, or 80.22 U.S. cents
    * Sixth round of NAFTA talks under way in Montreal
    * Bond prices climb across the yield curve

    TORONTO, Jan 23 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday but held within a narrow
range as investors assessed prospects for global trade and talks
to renegotiate the NAFTA trade deal.
    U.S. President Donald Trump's imposition of import tariffs
on washing machines and solar panels stirred fears in Asia of
more protectionist measures out of Washington.                 
    The tariffs come as the sixth and penultimate round of talks
on renegotiating the North American Free Trade Agreement between
Canada, the United States and Mexico get underway in Montreal.
The talks are due to run to Monday.             
    Canada sends about 75 percent of its exports to the United
States. Its economy could be hurt if the U.S. withdraws from
NAFTA as President Donald Trump has threatened.
    Separately, a government source confirmed that Canada will
sign on to a revised 11-member Asia-Pacific trade pact. The
source said "Canada has secured real gains" in talks to agree a
    At 8:56 a.m. EST (1356 GMT), the Canadian dollar         
was trading 0.2 percent lower at C$1.2466 to the greenback, or
80.22 U.S. cents.
    The currency traded in a range of C$1.2440 and C$1.2490.
    The price of oil, one of Canada's major exports, was lifted
by healthy world economic growth prospects and production curbs
by the Organization of the Petroleum Exporting Countries, Russia
and their allies.             
    U.S. crude        prices were up nearly 1 percent at $64.18
a barrel.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
price rose 1.5 Canadian cents to yield 1.796 percent and the
10-year             gained 13 Canadian cents to yield 2.223
    On Monday, the 10-year yield touched its highest intraday in
more than three years at 2.249 percent.
    Canadian retail sales data for November is due on Tuesday
and the December inflation report is due on Friday.      

 (Reporting by Fergal Smith; Editing by Bernadette Baum)