CANADA FX DEBT-C$ treads water ahead of expected U.S. Fed rate hike

    * Canadian dollar at 1.2955 to greenback, or 77.19 US cents
    * Price of U.S. oil falls 0.6 percent
    * Canadian bond prices trade mixed across the yield curve

    TORONTO, Sept 26 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday, trading in a
narrow range as oil prices fell and the U.S. dollar climbed
ahead of an expected interest rate hike by the U.S. Federal
    At 8:59 a.m. (1259 GMT), the Canadian dollar          was
nearly unchanged at 1.2955 to the greenback, or 77.19 U.S.
    The currency, which last Thursday touched its strongest
level in more than three months at 1.2885, traded in a narrow
range of 1.2945 to 1.2966.    
    The U.S. dollar        rose against a basket of major
currencies before a widely anticipated Fed rate hike priced in
by investors still on edge about a trade row between the United
States and China.             
    Canada has its own trade dispute with the United States and
is in slow-moving talks to renew the North American Free Trade
Agreement (NAFTA).
    The country is not making concessions needed to reach a deal
with the United States for a trilateral NAFTA pact and is
running out of time before Washington proceeds with a
Mexico-only agreement, a top U.S. official said on Tuesday.
    As the month-end deadline for the trade talks nears,
Canadian executives who hedge foreign exchange risk have been
changing their strategies so their companies can profit from any
possible swings in the Canadian dollar.             
    The price of oil, one of Canada's major exports, eased but
was still heading for a fifth consecutive quarter of gains,
driven by an impending drop in Iranian exports in the last three
months of the year when global demand heats up.             
    U.S. crude        prices were down 0.6 percent at $71.84 a
    Canadian government bond prices were mixed across the yield
curve, with the 10-year             rising 1 Canadian cent to
yield 2.459 percent. On Tuesday, the 10-year yield touched its
highest intraday in more than four months at 2.472 percent.
    Bank of Canada Governor Stephen Poloz is due to speak on
Thursday, while Canadian gross domestic product data for July is
due on Friday.

 (Reporting by Fergal Smith; Editing by Jeffrey Benkoe)