CANADA FX DEBT-C$ hits one-week low as oil prices extend decline

    * Canadian dollar declines 0.1 percent against the greenback
    * Price of U.S. oil falls 1.5 percent
    * Loonie touches its weakest since Oct. 11 at 1.3056
    * Canada-U.S. 10-year spread widens by 3.3 basis points

    TORONTO, Oct 18 (Reuters) - The Canadian dollar weakened to
a one-week low against its U.S. counterpart on Thursday as oil
prices added to a sharp decline the day before, while domestic
data showed that non-farm payroll jobs rose for the eighth
consecutive month.
    Canada added 28,800 jobs in September, helped by a pickup in
hiring in the trade, education and health care industries,
according to a report from ADP. The number of jobs added in
August was revised higher to 42,700 from 13,600.             
    The price of oil, one of Canada's major exports, slumped to
a one-month low, pressured by the fourth weekly increase in U.S.
crude inventories.             
    U.S. crude        prices were down 1.5 percent at $68.73 a
    At 9:01 a.m. (1301 GMT), the Canadian dollar          was
trading 0.1 percent lower at 1.3042 to the greenback, or 76.68
U.S. cents. The currency touched its weakest level since Oct. 11
at 1.3056.
    The U.S. dollar        added to this week's gains against a
basket of currencies, encouraged by Federal Reserve minutes
signaling more interest rate hikes in store.              
    Canadian inflation data for September and the August retail
sales report are due on Friday, which could help guide
expectations for additional interest rate hikes from the Bank of
    Economists expect the central bank to hike next week for the
fifth time since July 2017, a Reuters poll showed.              
    Canadian government bond prices were mixed across the yield
curve, with the 10-year             rising 8 Canadian cents to
yield 2.515 percent.
    The gap between Canada's 10-year yield and its U.S.
equivalent widened by 3.3 basis points to a spread of 68.8 basis
points in favor of the U.S. bond.              

 (Reporting by Fergal Smith
Editing by Nick Zieminski)