CANADA FX DEBT-C$ dips as trade tensions pressure equity markets

    * Canadian dollar at C$1.3293, or 75.23 U.S. cents
    * The price of U.S. oil rises 0.9 percent
    * Bond prices higher across the yield curve
    * 10-year yield touches its lowest since April 2 at 2.099

    TORONTO, June 25 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday as worries over an
escalating trade dispute between the United States and other
leading economies weighed on stocks.
    At 9:22 a.m. EDT (1322 GMT), the Canadian dollar         
was trading 0.2 percent lower at C$1.3293 to the greenback, or
75.23 U.S. cents.
    The currency traded in a range between C$1.3270 and
C$1.3315. On Friday, it touched its weakest in one year at
    Equity markets were pressured on Monday by a report saying
that the U.S. planned to bar many Chinese companies from
investing in U.S. technology firms and block additional
technology exports to China.                         
    Canada exports many commodities, including oil, and runs a
current account deficit so its economy could also be hurt if the
flow of trade or capital slows.
    U.S. crude        prices were up 0.9 percent at $69.16 a
barrel. Analysts said global oil markets would likely remain
relatively tight this year despite the announcement on Friday of
a production increase by major producers.             
    A higher oil price has helped offset data on Friday showing
an unexpected plunge in Canada's retail sales in April and flat
inflation figures for May.             
    Chances of a Bank of Canada interest rate hike in July have
fallen to less than 50 percent from about 70 percent before the
data, the overnight index swaps market showed.            
    Still, speculators have cut bearish bets on the Canadian
dollar for a second straight week, data from the U.S. Commodity
Futures Trading Commission and Reuters calculations showed on
Friday. As of June 19, net short positions dipped to 14,014
contracts from 14,988 a week earlier.
    Canadian government bond prices were higher across the yield
curve in sympathy with safe-haven assets such as Treasuries. The
two-year            rose 1 Canadian cent to yield 1.788 percent
and the 10-year             gained 11 Canadian cents to yield
2.112 percent.
    The 10-year yield touched its lowest since April 2 at 2.099

 (Reporting by Fergal Smith
Editing by Marguerita Choy)