CANADA FX DEBT-C$ steadies as market braces for Bank of Canada decision

* Canadian dollar at C$1.3281, or 75.30 U.S. cents
    * Bond prices higher across the yield curve

    TORONTO, Dec 7 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday, trading in a
narrow range as oil fell and the market braced for the Bank of
Canada's interest rate decision.
    The central bank is widely expected to hold interest rates
at 0.50 percent, with the focus on the policy statement for any
mention of how Donald Trump's U.S. presidential election victory
could affect the Canadian and U.S. economies.
    The loonie reached a more than six-week peak against the
greenback on Monday at C$1.3236, helped by recent
stronger-than-expected economic data and an output cut agreement
by members of the Organization of the Petroleum Exporting
    But data on Tuesday showed a disappointing drop in export
volumes and oil, one of Canada's major exports, has
pared some gains since the OPEC deal.
    U.S. crude prices were down 1.18 percent at $50.33 a
barrel on doubts production cuts would be deep enough to end a
supply overhang that has weighed on markets for more than two
    At 8:54 a.m. EDT (1354 GMT), the Canadian dollar 
was trading at C$1.3281 to the greenback, or 75.30 U.S. cents,
slightly stronger than Tuesday's close of C$1.3284, or 75.28
U.S. cents.
    The currency's strongest level of the session was C$1.3263,
while its weakest was C$1.3292.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries and German government
bonds amid expectations the European Central Bank will extend
its bond-buying stimulus scheme this week. 
    The two-year rose 3 Canadian cents to yield 0.708
percent and the benchmark 10-year climbed 15
Canadian cents to yield 1.617 percent.
    On Thursday, the 10-year yield touched its highest in more
than one year at 1.712 percent as investors bet that the
policies of Trump will trigger higher inflation.

 (Reporting by Fergal Smith; Editing by Bill Trott)