CANADA FX DEBT-C$ slips as U.S.-China trade spat dims global growth prospects

    * Canadian dollar dips 0.2 percent against the greenback
    * Price of U.S. oil rises 1.8 percent
    * Canadian bond prices fall across the yield curve
    * 10-year yield touches a 4-month high at 2.459 percent

    By Fergal Smith
    TORONTO, Sept 24 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday, paring some recent
gains, as escalation of a trade dispute between the United
States and China weighed on the outlook for global growth.
    At 3:48 p.m. (1948 GMT), the Canadian dollar          was
trading 0.2 percent lower at 1.2944 to the greenback, or 77.26
U.S. cents. 
    "You can pin some of that (weakness) on the deteriorating
situation between China and the U.S.," said Bipan Rai, North
America head, FX strategy at CIBC Capital Markets.
    The United States and China imposed fresh tariffs on each
other's goods as the world's biggest economies showed no signs
of backing down from an increasingly bitter trade dispute that
is expected to knock global economic growth.             
     The trade spat weighed on stock markets around the world,
while the price of some industrial metals, such as copper
      , also declined.                         
    Canada exports many commodities and runs a current account
deficit, so its economy could be hurt if the global flow of
trade or capital slows.
    The country has its own trade dispute with the United States
and is in talks to renew the North American Free Trade
     U.S. and Canadian officials are "very likely" to hold
informal talks on NAFTA on the sidelines of a major U.N. meeting
in the next few days, Canadian Prime Minister Justin Trudeau
said on Sunday.             
    The price of oil, one of Canada's major exports, climbed
after Saudi Arabia and Russia ruled out any immediate increase
in production despite calls by U.S. President Donald Trump for
action to raise global supply.             
    U.S. crude oil futures        settled 1.8 percent higher at
$72.08 a barrel.
    Canadian wholesale trade rose 1.5 percent in July from June,
a bigger increase than the 0.5 percent gain forecast by
analysts, data from Statistics Canada showed.                 
    Sales volumes rose 1.2 percent, which could help boost gross
domestic product for the month. Data for July gross domestic
product is due on Friday.
    On Thursday, the loonie touched its strongest in more than
three months at 1.2885.
    Still, speculators have raised bearish bets on the Canadian
dollar for the third straight week, data from the U.S. Commodity
Futures Trading Commission and Reuters calculations showed on
    Canadian government bond prices were lower across the yield
curve, with the 10-year             falling 15 Canadian cents to
yield 2.448 percent. The 10-year yield touched 2.459 percent,
the highest since May 22.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky and Lisa