CANADA FX DEBT-C$ recovers as Trump says NAFTA renegotiation 'very possible'

    * Canadian dollar at C$1.3607 or 73.49 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, April 27 (Reuters) - The Canadian dollar hit a
14-month low on Thursday before recovering to edge higher
against the U.S. dollar after U.S. President Donald Trump told
Canada and Mexico that renegotiating the North American Free
Trade Agreement was "very possible."
    At 9:42 a.m. ET (1342 GMT), the Canadian dollar          was
trading at C$1.3607 to the greenback, or 73.49 U.S. cents,
stronger than the Bank of Canada's official Wednesday close of
C$1.3612, or 73.46 U.S. cents. 
    Earlier in the session it touched C$1.3648, its weakest
since Feb. 25, 2016. 
    The currency had fallen on Wednesday after a U.S. official
said the White House was considering a draft executive order to
withdraw from NAFTA, which binds the United States, Canada and
    On Thursday, Trump wrote on Twitter that he had spoken with
the leaders of Canada and Mexico who asked to renegotiate the
trade pact. He added: "Relationships are good - deal very
    The loonie's slight gain was tempered by a sharp fall in
prices for oil, a major Canadian export.      
    U.S. crude        prices were last down 2.1 percent at
$48.58 a barrel, while Brent         lost 2.2 percent to $50.69
after news that two key Libyan oilfields had restarted, pumping
crude into an already bloated market. 
    Canadian government bond prices were lower across the
maturity curve, with the two-year            price down 2.5
Canadian cents to yield 0.747 percent and the benchmark 10-year
            falling 17.2 Canadian cents to yield 1.595 percent.

 (Reporting by Alastair Sharp Editing by W Simon)