CANADA FX DEBT-C$ firms as data shows payroll earnings accelerating

    * Canadian dollar rises 0.1% against the greenback
    * Canadian average weekly earnings increase 3.4%
    * Oil prices gain 1.3%
    * Bond prices move higher across the yield curve

    TORONTO, July 25 (Reuters) - The Canadian dollar edged
higher on Thursday against its U.S. counterpart, as oil prices
rose and data that showed domestic average weekly earnings rose
in May at the fastest pace in 15 months.
    Average weekly earnings of non-farm payroll employees were
up 3.4% from the previous year, the highest year-over-year
growth rate since February 2018, data from Statistics Canada
    The upward move in weekly earnings was accompanied by an
increase of 32,600 in the number of non-farm payroll employees.
    Meanwhile, the price of oil, one of Canada's major exports,
rose amid Middle East tensions and a big fall in U.S. crude
stocks. But prices faced downward pressure from weak
manufacturing data in Western nations indicating slowing
economic growth that could reduce fuel demand. U.S. crude oil
futures        were up 1.3% to $56.63 a barrel.             
    At 10:41 a.m. (1441 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3126 to the greenback, or 76.18 U.S.
cents. The currency, which hit its weakest intraday level in
nearly one month at 1.3164 on Tuesday, traded in a range of
1.3115 to 1.3153.
    The steady profile for the loonie came as European Central
Bank President Mario Draghi offered a glimmer of optimism about
his outlook on the euro zone economy, pressuring the U.S. dollar
       against a basket of major currencies, including the euro.
    Canadian government bond prices were lower across the yield
curve, with the two-year            down 4 Canadian cents to
yield 1.448% and the 10-year             falling 31 Canadian
cents to yield 1.477%.
    The 10-year yield touched its lowest intraday level since
June 18 at 1.404%, while the gap between Canada's 10-year yield
and its U.S. counterpart widened by 1.9 basis points to a spread
of 61.9 basis points, the biggest gap since June 18.

 (Reporting by Levent Uslu
Editing by Tom Brown)