CANADA FX DEBT-C$ steady, shakes off GDP decline; set to beat peers in January

    * Canadian dollar near flat against the greenback
    * Canadian GDP falls 0.1 percent in November
    * Price of U.S. oil rises 0.2 percent
    * Bond prices rise across the yield curve

    TORONTO, Jan 31 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Thursday, maintaining
its outperformance this month against its peers as oil prices
rose and shrugging off data showed an expected contraction in
the domestic economy.
    Canada's gross domestic product fell by 0.1 percent in
November from October, matching estimates, on declines in the
wholesale trade sector, as well as finance and insurance,
Statistics Canada said.             
    The price of oil, one of Canada's major exports, rose for a
third straight day on tighter supply after U.S. sanctions on
Venezuelan exports and lower-than-expected U.S. fuel stocks.
U.S. crude oil futures        were up 0.2 percent at $54.35 a
    At 8:39 a.m. (1339 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3142 to the greenback, or 76.09
U.S. cents. The currency, which touched on Wednesday its
strongest level in more than two months at 1.3119, traded in a
range of 1.3121 to 1.3161.
    For the month, the loonie has advanced 3.8 percent, the best
performance of G10 currencies, helped by a rebound in oil prices
and a recovery in risk appetite. It declined 7.8 percent in
    On Thursday, the Federal Reserve signaled a potential end to
its interest rate hike cycle, boosting investor sentiment.
    Investors are also anxiously awaiting the outcome of
U.S.-China trade talks which began in Washington on Wednesday.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 2 Canadian cents to yield 1.798 percent and the 10-year
            climbed 13 Canadian cents to yield 1.898 percent.
    The 10-year yield touched its lowest intraday since Jan. 4
at 1.889 percent.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)