CANADA FX DEBT-C$ weakens to 11-day low as risk aversion rises

* Canadian dollar at C$1.3110, or 76.28 U.S. cents
    * Loonie touches its weakest since Sept. 1 at C$1.3123
    * Bond prices lower across the maturity curve

    TORONTO, Sept 12 (Reuters) - The Canadian dollar weakened to
an 11-day low against its U.S. counterpart on Monday as rising
risk aversion and lower oil prices weighed on the risk-sensitive
commodity-linked currency.
    European stocks and bonds fell in a volatile market, hit by
growing concerns that global central banks' commitment to the
post-crisis orthodoxy of super-low interest rates and asset
purchase programs may be waning. 
    Oil fell after speculators delivered hefty cuts to their
bullish bets last week and U.S. crude drillers added more rigs
for a tenth week running. U.S. crude prices were down
1.53 percent at $45.18 a barrel. 
    At 9:07 a.m. EDT (1307 GMT), the Canadian dollar 
was trading at C$1.3110 to the greenback, or 76.28 U.S. cents,
weaker than Friday's close of C$1.3037, or 76.70 U.S. cents.
    The currency's strongest level of the session was C$1.3036,
while it touched its weakest since Sept. 1 at C$1.3123.
    Losses for the loonie came after a more dovish-than-expected
statement from the Bank of Canada last week. 
    Data on Friday showed Canada created more jobs than expected
in August on increased hiring in the construction and services
sectors, but the gains did not fully make up for recent declines
in employment, pointing to a labor market that was struggling to
gain momentum. 
    Speculators have pared bullish bets on the Canadian dollar,
Commodity Futures Trading Commission data showed on Friday. Net
long Canadian dollar positions dipped to 20,905 contracts in the
week ended Sept. 6 from 22,400 contracts in the prior week.
    Canadian government bond prices were lower across the yield
curve, with the two-year bond down 1.5 Canadian cents
to yield 0.591 percent and the benchmark 10-year 
falling 15 Canadian cents to yield 1.167 percent.
    The curve steepened as the spread between the 2-year and
10-year yields widened by 0.8 of a basis point to 57.6 basis
points, its widest in more than two months, indicating
underperformance for longer-dated maturities.
    Domestic manufacturing sales data for July is due for
release on Friday. Strong sales at the start of the third
quarter would likely reinforce expectations that the economy
will bounce back strongly after shrinking in the second quarter.

 (Reporting by Fergal Smith; Editing by Nick Zieminski)