CANADA FX DEBT-C$ weakens as softer oil prices weigh

* Canadian dollar at C$1.1255 or 88.85 U.S. cents
    * Bond prices mixed

    By Jeffrey Hodgson
    TORONTO, Oct 27 (Reuters) - The Canadian dollar weakened
against the U.S. currency on Monday, hurt by a slide in the
price of oil that dampened the prospects for Canadian energy
    Brent crude oil fell below $85 a barrel on Monday after
Goldman Sachs slashed its price forecasts, citing abundant
supply and lackluster demand despite a pick-up in global
economic growth. 
    "Particularly for the Canadian dollar here, it's oil
prices," said Shaun Osborne, chief currency strategist at TD
Securities. "That is going to be a headwind."
    The Canadian dollar traded as low as C$1.1255 to
the U.S. currency, or 88.85 U.S. cents - its weakest level since
Thursday - compared with Friday's close of C$1.1233 to the U.S.
dollar, or 89.02 U.S. cents.
    Osborne said in the near term, he expects the currency to
hold to its recent range of C$1.12 to C$1.13 to the greenback.
    Traders are looking ahead to testimony by Bank of Canada
Governor Stephen Poloz to the Senate banking committee on Oct.
29. His testimony had been scheduled for last week but was
canceled due a gunman's attack on Parliament Hill.
    Outside of Canada, investors are also looking to this week's
meeting of the U.S. Federal Reserve's rate-setting committee,
which is expected to reinforce its willingness to wait a long
while before hiking interest rates. 
    Canadian government bond prices were mixed, with the
two-year up half a Canadian cent to yield 1 percent.
The benchmark 10-year was unchanged and yielded
2.018 percent.

 (Editing by Bernadette Baum)