* C$ at C$1.0366 vs US$, or 96.47 U.S. cents * C$ weakens to multi-month lows against Aussie and New Zealand dollars * Bond prices mostly lower across curve By Solarina Ho TORONTO, Oct 15 The Canadian dollar was weaker on Tuesday against its U.S. counterpart, which rose to a one-month high against a basket of currencies on hopes that Washington lawmakers are close to finalizing an agreement that would end a government shutdown and avert a default on U.S. debt. Expectations were heightened after Senate Majority Leader Harry Reid, a Democrat, and his Republican counterpart, Mitch McConnell, wrapped up lengthy deal talks on Monday and expressed optimism. The Treasury Department estimates that the government will reach a $16.7 trillion borrowing limit on Thursday, Oct 17. "Optimism that's coming out through Washington at least for an increased prospects for a deal seems to be providing a bid to the U.S. dollar," said Mazen Issa, macro strategist At TD Securities. "Just looking at across the major currency baskets as well, (the U.S. dollar) is generally stronger against the G10." The Canadian dollar was at C$1.0366 versus the greenback, or 96.47 U.S. cents at 9:58 a.m. (1501 GMT), softer than Monday's Thanksgiving holiday close at C$1.0349, or 96.63 U.S. cents. The Canadian dollar's performance was mixed against other key currencies, but weakened to multi-month lows against its commodities sister currencies. It hit its weakest level against the Australian dollar since early June and its weakest level against the New Zealand dollar since late April. Domestically, data from the Canadian Real Estate Association showed sales of existing homes in Canada edged up in September and surged from a year earlier. Figures from the Teranet-National Bank Composite House Price Index showed Canadian home prices were unchanged in September after hitting a record high the month before, suggesting the housing market is cooling. Government bond prices were mostly lower across the maturity curve, with the two year bond off 3 Canadian cents to yield of 1.226 percent and the benchmark 10-year bond falling 26 Canadian cents to yield 2.625 percent.