CANADA FX DEBT-C$ retreats from 11-day high as U.S. stock market rally pauses

    * Canadian dollar dips 0.2% against the greenback
    * Price of U.S. oil rises 1.1%
    * Canada's 10-year bond rises 24 Canadian cents to yield

    TORONTO, April 2 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Tuesday, pulling back from an
11-day high the previous day as the greenback broadly rose and
this week's rally in stocks lost some momentum.
     U.S. stocks opened flat, pausing after a three-day surge as
investors looked for more signs of strength in the economy in
the wake of growth worries.              
    Upbeat U.S. manufacturing data on Monday helped boost the
U.S. dollar. On Tuesday, it climbed to a nearly four-week high
against a basket of major currencies.             
    At 9:39 a.m. (1339 GMT), the Canadian dollar          was
trading 0.2% lower at 1.3332 to the greenback, or 75.01 U.S.
cents. The currency, which touched on Monday its strongest level
in nearly two weeks at 1.3297, traded in a range of 1.3303 to
    The loonie has climbed 2.3% since the start of the year,
tying sterling as the best performing G10 currency.
    Furthermore, the Canadian dollar has had a winning steak in
April. In 11 of the last 13 years it has gained ground in the
month, a sequence strategists link to seasonal vitality in
stocks and energy products.             
    The price of oil, one of Canada's major exports, rose to its
highest this year on the prospect that more sanctions against
Iran and further disruptions to Venezuelan output could deepen
an OPEC-led supply cut, and as the market became less worried
that demand may slow.             
    U.S. crude        was up 1.1% at $62.24 a barrel.
    On Monday, Bank of Canada Governor Stephen Poloz expressed
guarded optimism that the country would emerge from a soft patch
but maintained a cautious tone overall, saying the economic
outlook still warrants an interest rate below the neutral range.
    The central bank's estimate of neutral, the level at which
it is neither stimulating nor restraining the economy, is
between 2.5% and 3.5%.    
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 4 Canadian cents to yield
1.584% and the 10-year             rising 24 Canadian cents to
yield 1.675%.
    Canada's jobs data for March is due on Friday.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)