CANADA FX DEBT-C$ weakens as investors cut risks

 * C$ at C$1.0230 vs US$, or 97.70 U.S. cents

 * Investors in risk-averse mood

 * Bond prices rise

 TORONTO, Oct 18 (Reuters) - The Canadian dollar weakened
slightly against its U.S. counterpart on Tuesday as investors
moved to safer assets amid ongoing concerns about the European
debt crisis and slower-than-expected Chinese growth.

 World stocks stumbled and government bonds rose as the
Chinese data and a warning on France's triple-A sovereign
credit rating prompted investors to cut risks. [MKTS/GLOB]

 Analysts said the Canadian dollar and other G7 currencies
are likely to continue to weaken against the U.S. dollar as
markets turn toward risk aversion again.

 "All asset classes are taking cover this morning as the
market prepares for disappointment on the European policy
front," John Curran, senior vice president at CanadianForex, a
commercial foreign exchange dealing firm, said in his morning
research note.

 "Poor U.S. economic prospects combined with ever-present
European debt concerns will continue to weigh on the Canadian
dollar as its growth/commodity currency status makes it
susceptible to negative global growth news."

 At 8:52 a.m. (1252 GMT), the Canadian dollar CAD=D3 stood
at C$1.0230 to the U.S. dollar, or 97.70 U.S. cents, down
slightly from Monday's North American session close at C$1.0221
against the U.S. dollar, or 97.84 U.S. cents.

 With euro-zone woes as a backdrop all week ahead of the
Oct. 23 summit of European leaders, the Canadian dollar will
likely be under pressure in the next few sessions.

 Canadian bond prices were higher across the curve with the
risk-off mood. The two-year Canadian government bond CA2YT=RR
rose 0.5 of a Canadian cent to yield 0.987 percent, while the
10-year bond CA10YT=RR climbed 13 Canadian cents to yield
2.275 percent.

 (Editing by Chizu Nomiyama)