CANADA FX DEBT-Loonie hits 10-day low as U.S-China tariff threat rises

    * Canadian dollar falls 0.5% against the greenback
    * Loonie touches its weakest since April 26 at 1.3494
    * Price of U.S. oil falls 1.1%
    * Canadian bond prices rise across a flatter yield curve

    TORONTO, May 6 (Reuters) - The Canadian dollar weakened to a
10-day low against its U.S. counterpart on Monday as investors
worried about a potential escalation of the trade dispute
between the United States and China that could hurt the global
    Global stocks          fell after U.S. President Donald
Trump in a surprising move threatened to hike tariffs on Chinese
goods this week.             
    Canada runs a current account deficit and exports many
commodities, including oil, so its economy could suffer if the
global flow of capital or trade slows. U.S. crude oil futures
       were down 1.1% at $61.26 a barrel.
    Meanwhile, Canada is leaning on the United States to help
settle a dispute with China, which has started to block imports
of vital Canadian commodities amid a dispute over a detained
Huawei executive.              
    At 9:19 a.m. (1319 GMT), the Canadian dollar          was
trading 0.5% lower at 1.3482 to the greenback, or 74.17 U.S.
cents. The currency, which last week gained 0.3% as U.S. data
showed muted wage inflation, touched its weakest intraday level
since April 26 at 1.3494.
    On Friday, data from the U.S. Commodity Futures Trading
Commission and Reuters calculations showed that speculators have
cut their bearish bets on the Canadian dollar for the second
straight week. As of April 30, net short positions had fallen to
46,745 contracts from 47,493 in the prior week.
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries, with the two-year
           up 5 Canadian cents to yield 1.616% and the 10-year
            rising 39 Canadian cents to yield 1.723%.
    On Friday, the 10-year yield touched its highest intraday
since April 23 at 1.790%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)