CANADA FX DEBT-C$ notches 9-day high vs weaker greenback as oil rallies

 (Adds dealer quotes and details throughout; updates prices)
    * Canadian dollar at C$1.2702, or 78.73 U.S. cents
    * U.S. crude oil reaches $58 for first time since July 2015
    * Bond prices rise across the yield curve
    * Canada-U.S. 2-year spread narrows by 3.8 basis points

    By Fergal Smith
    TORONTO, Nov 22 (Reuters) - The Canadian dollar strengthened
to a nine-day high against its U.S. counterpart on Wednesday as
oil prices climbed and minutes from the Federal Reserve's most
recent policy meeting weighed on the greenback.
    The U.S. dollar        fell against a basket of major
currencies after data showed new orders for U.S.-made capital
goods unexpectedly fell in October, and the Fed's November
meeting minutes showed policymakers may be starting to question
a December interest rate increase.                 
    The price of U.S. crude oil        reached $58 a barrel for
the first time since July 2015 as the shutdown of one of the
largest crude pipelines from Canada cut supply to the United
    Oil is one of Canada's major exports.
    "Everyone is looking at that key psychological level in
crude, which is $60," said Blake Jespersen, managing director,
foreign exchange sales at BMO Capital Markets. "And I think if
we get there, USD-CAD is probably (going to trade) down through
    Strong inflows of foreign money into Canadian stocks and
bonds this year are adding to investor confidence that the rally
since May in the country's currency is sustainable because it is
not just supported by speculative flows.             
    At 4 p.m. ET (2100 GMT), the Canadian dollar          was
trading at C$1.2702 to the greenback, or 78.73 U.S. cents, up
0.6 percent.
    The currency touched its strongest since Nov. 13 at
C$1.2697. Although activity was lighter than usual ahead of the
U.S. Thanksgiving holiday on Thursday. 
    The loonie has been pressured recently by concern that an
uncertain outlook for the North American Free Trade Agreement
will stall Bank of Canada interest rate hikes.
    The United States, Mexico and Canada failed to resolve any
major differences in a fifth round of talks to rework the NAFTA
trade deal, drawing a swift complaint from the Trump
administration on Tuesday that the lack of progress could spell
    Canadian government bond prices were higher across the yield
curve on Wednesday, although they lagged the rally in U.S.
    Canada's two-year            rose 1.5 Canadian cents to
yield 1.455 percent and the 10-year             climbed 10
Canadian cents to yield 1.907 percent.
    The gap between Canada's two-year yield and its U.S.
equivalent narrowed by 3.8 basis points to a spread of -27.6
basis points.
    Canadian retail sales data for September is due on Thursday.

 (Reporting by Fergal Smith; Editing by Phil Berlowitz and Lisa