CANADA FX DEBT-C$ dips as investors weigh potential NAFTA trade deal concessions

    * Canadian dollar at C$1.2944, or 77.26 U.S. cents
    * Price of U.S. oil rises 0.8 percent
    * Bond prices mixed across the yield curve

    TORONTO, Aug 29 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Wednesday, paring some of this
week's gains as investors weighed concessions that Canada would
be willing to make to secure a deal on a revamped NAFTA trade
    Canada and United States are set to tackle their contentious
issues in bilateral talks on Wednesday, as the two nations work
to salvage the North American Free Trade Agreement amid signs
Ottawa was open to taking a more conciliatory approach.
    Canada is ready to make concessions on dairy to secure a
deal, according to the Globe and Mail.             
    At 8:16 a.m. (1216 GMT), the Canadian dollar          was
trading 0.1 percent lower at C$1.2944 to the greenback, or 77.26
U.S. cents. The currency, which notched a nearly three-month
high on Tuesday at C$1.2887, traded in a range of C$1.2904 to
    The modest decline for the loonie came as the U.S. dollar
       got a boost from worries that the conflict over trade
between the U.S. and China was not about to end soon.
    The price of oil, one of Canada's major exports, rose as
risks of supply disruptions from places such as Venezuela,
Africa and Iran triggered expectations of a tightening market.
    U.S. crude        prices were up 0.8 percent at $69.06 a
    Canadian government bond prices were mixed across the yield
curve, with the two-year            price flat to yield 2.148
percent and the 10-year             rising 3 Canadian cents to
yield 2.318 percent.
    Canada's gross domestic product data for the second quarter
is due on Thursday.

 (Reporting by Fergal Smith
Editing by Chizu Nomiyama)