* C$ rallies after headline jobs number tops estimates
* C$ snaps losing skid, ends week 1.4 percent higher
* Bonds end flat but off session lows
By Frank Pingue
TORONTO, Nov 7 (Reuters) - The Canadian dollar ended higher on Friday and snapped a two-session losing skid after data showed the Canadian economy unexpectedly added jobs in October, although many of the jobs were special hires for the Oct. 14 federal election.
Canadian bond prices reversed early losses after the jobs data and finished flat to higher across the curve as nagging concerns about a global recession convinced dealers to grab hold of more secure government debt ahead of the weekend.
The Canadian dollar closed at C$1.1880 to the U.S. dollar, or 84.18 U.S. cents, up 0.3 percent from C$1.1916 to the U.S. dollar, or 83.92 U.S. cents, at Thursday's close.
For the week, the Canadian dollar rose 1.4 percent.
Despite the election-related gains, the headline jobs number showed the economy added 9,500 jobs in October and was comfortably above expectations that Canada had shed 10,000 positions. And that was enough to prompt a rally in the Canadian dollar.
Adding to the gains was a slide in the U.S. dollar versus a number of major currencies after U.S. data showed the economy shed many more jobs than expected, while the jobless rate moved to a 14-year high.
"The Canadian data was positive for the Canadian dollar and it does suggest that for right now at least the big job losses are not apparent," said Charmaine Buskas, senior economics strategist at TD Securities.
"At the same time we did see a pretty big U.S. dollar selloff on the back of a bit weaker-than-expected payrolls number, so that combination created a little bit of support for the Canadian dollar."
Total job creation in Canada for October was a far cry from September, when 106,900 jobs were added, but it still followed scores of data this week from around the world that suggest a global recession could be more prolonged than had been thought.
Despite some impressive data on the Canadian economy, three of Canada's biggest banks forecast the Canadian economy will enter a mild recession next year.
The next big figures due out of Canada will come from the housing report on Monday. It is expected to show housing starts dropped 8 percent in October to a seasonally adjusted annualized 200,000 units from 217,600 in September.
BOND PRICES REBOUND
Canadian bond prices either finished higher or comfortably off their session lows as dealers, with concerns about a global recession still on their minds, moved into more secure assets going into the weekend.
An early slide in bond prices was due largely to renewed demand for equities at the start of the North American session, but that move was mostly undone.
The two-year bond slipped 1 Canadian cent to C$101.70 to yield 1.902 percent. The 10-year bond rose 27 Canadian cents to C$104.32 to yield 3.708 percent.
The yield spread between the two- and 10-year bond was 181 basis points, down from 185 basis points at the previous close
The 30-year bond rose 7 Canadian cents to C$112.77 to yield 4.225 percent. In the United States, the 30-year Treasury yielded 4.259 percent. (Editing by Peter Galloway)