CANADA FX DEBT-C$ recovers from 1-week low as jobs gain supports rate hike

    * Canadian dollar rises 0.1 percent against the greenback
    * Loonie touches its weakest since Sept. 28 at 1.2955
    * Canada adds 63,300 jobs in September
    * Canada's 10-year yield nears a 5-year high at 2.595

    TORONTO, Oct 5 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Friday, recovering from an
earlier one-week low, as data showing a jump in domestic jobs
supported expectations of another interest rate hike this month
from the Bank of Canada.
    The Canadian economy added 63,300 jobs in September,
Statistics Canada data indicated. That was more than twice as
many as analysts had forecast, although all the job gains were
in part-time positions.             
    The Bank of Canada has raised interest rates four times
since July 2017. Chances of a further hike at the Oct. 24 policy
announcement were little changed at about 85 percent after the
data, the overnight index swaps market indicated.           
    In separate data, Canada recorded its first trade surplus
for more than 18 months in August as unusually timed shutdowns
at auto plants helped cut imports at a greater rate than
    At 9:22 a.m. (1322 GMT), the Canadian dollar          was
trading 0.1 percent higher at 1.2915 to the greenback, or 77.43
U.S. cents. The currency's strongest level of the session was
1.2887, while it touched its weakest since Sept. 28 at 1.2955.
    The modest gain for the loonie came as data showing a
smaller-than-expected U.S. jobs gain weighed on the greenback.  
  The U.S. dollar        declined against a basket of major
currencies, paring some recent gains.             
    For the week, the loonie was on track to decline 0.1
percent. On Monday, it touched its strongest in more than four
months at 1.2783 after a last-minute deal to salvage the
trilateral North American Free Trade Agreement reduced
uncertainty for Canada's economy.
    U.S. crude oil futures        were little changed at $74.32
a barrel. Oil is one of Canada's major exports.             
    Canadian government bond prices were lower across a steeper
yield curve, with the two-year            down 1 Canadian cent
to yield 2.317 percent and the 10-year             falling 23
Canadian cents to yield 2.587 percent.
    The 10-year yield touched its highest since January 2014 at
2.595 percent.
    Canada's bond market is due to close early ahead of the
Thanksgiving Day holiday on Monday.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)