CANADA FX DEBT-Canadian dollar adds to last week's rally as oil climbs

    * Loonie posts a near six-week high at 1.3150 per U.S.
    * Price of U.S. oil increases 0.8%
    * Chances of a BoC rate cut this year fall to less than 40%
    * Canada's 10-year yield touches a two-week high at 1.328%

    TORONTO, Sept 9 (Reuters) - The Canadian dollar strengthened
to its highest in nearly six weeks against its U.S. counterpart
on Monday, supported by higher oil prices and lowered
expectations for a Bank of Canada interest rate cut this year.
    At 8:56 a.m. (1256 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3151 to the greenback, or 76.04 U.S.
cents. The currency, which last week snapped a seven-week losing
streak, touched its strongest intraday level since July 31 at
    Gains for the loonie on Monday came as stocks          were
boosted by hopes of stimulus from the world's central banks to
support slowing growth.             
    Canada exports many commodities including oil, so its
economy could benefit from an improved outlook for the global
    Oil prices rose after the new Saudi Arabian energy minister,
Prince Abdulaziz bin Salman, confirmed expectations that there
would be no radical change in his country's oil policy. U.S.
crude        oil futures were up 0.8% at $56.97 a barrel.
    Meanwhile, chances that the Bank of Canada will ease by
December have fallen to less than 40% from about 50% before
domestic data on Friday showing a bigger-than-expected jobs gain
in August.                       
    The central bank last week left its benchmark interest rate
unchanged at 1.75% and made no mention of future moves despite
easing this year by many of its global peers, including the U.S.
Federal Reserve.                     
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 5 Canadian cents to yield 1.516% and the 10-year
            was down 27 Canadian cents to yield 1.310%.
    The 10-year yield touched its highest intraday since Aug. 23
at 1.328%.

 (Reporting by Fergal Smith; Editing by Andrea Ricci)