CANADA FX DEBT-C$ turns higher as U.S. Treasury yields slip

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar strengthens 0.1 percent against the
    * Domestic housing starts unexpectedly fell in September
    * Price of U.S. oil rises 0.9 percent
    * Canadian bond prices rise across a flatter yield curve

    By Fergal Smith
    TORONTO, Oct 9 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Tuesday, clawing back its losses
from earlier in the session as oil prices rose and the recent
move higher in U.S. Treasury yields stalled.
    At 3:13 p.m. (1913 GMT), the Canadian dollar          was
trading 0.1 percent higher at 1.2943 to the greenback, or 77.26
U.S. cents.
    The currency, which on Monday touched its weakest intraday
in more than one week at 1.3010 to the dollar, traded in a range
of 1.2936 to 1.3004.
    The loonie's recovery from its low for the day came as the
U.S. dollar        pulled back from an earlier seven-week peak
against a basket of currencies.             
    "The U.S. dollar was bid and gave up some of its gains as
the day progressed," said Win Thin, global head of emerging
markets strategy at Brown Brothers Harriman. "Part of it is
disappointment that U.S. yields didn't go any higher."
    U.S. long-dated Treasury yields fell from multi-year highs
in choppy trading as investors took a breather from selling
    Higher interest rates and the U.S.-China trade war are among
factors that are diminishing prospects for economic expansion,
said the International Monetary Fund as it cut its forecast for
global growth in 2018 and 2019.             
    Canada's economy could suffer if global growth slows, since
it exports many commodities, including oil.
    U.S. crude oil futures        settled 0.9 percent higher at
$74.96 a barrel on growing evidence of falling Iranian crude
exports before the imposition of new U.S. sanctions.
    The loonie declined 0.3 percent last week despite a deal to
revamp the North American Free Trade Agreement and data on
Friday showing a jump in domestic jobs.             
    Canadian housing starts fell in September to a seasonally
adjusted annualized rate of 188,683 units, the third straight
month of decline, data on Tuesday from the Canadian Mortgage and
Housing Corp showed. Economists had expected starts to rise to
    Canadian government bond prices were higher across a flatter
yield curve as the domestic debt market reopened following the
Thanksgiving Day holiday on Monday. The 10-year            
climbed 23 Canadian cents to yield 2.574 percent.
    On Friday, the 10-year yield touched its highest intraday
level since January 2014 at 2.615 percent.

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