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CANADA FX DEBT-C$ slips after Friday's jobs data surge, as oil pares gains

    * Canadian dollar weakens 0.3% against the greenback
    * Oil prices pare gains
    * Canadian bond yields mixed across the curve

 (Updates prices)
    By Saqib Iqbal Ahmed
    April 12 (Reuters) - The Canadian dollar slipped against its
U.S. counterpart on Monday, giving up nearly all advances logged
in the previous session, as oil prices pared the day's early
gains.
    At 4:01 p.m. EDT (2001 GMT), the Canadian dollar was trading
0.3% lower at 1.2557 to the greenback, or 79.64 U.S. cents.
    The loonie had risen 0.3% on Friday after data showed Canada
added far more jobs than expected in March, bringing employment
to within 1.5% of pre-pandemic levels.             
    A rise in the price of oil, one of Canada's main exports,
initially helped the loonie fend off deeper losses against its
U.S. counterpart on Monday. But with oil barely clinging to the
day's gains as the trading session progressed, the Canadian
currency came under pressure.             
    Investors' expectation for a continued rise in U.S. Treasury
yields has been supportive of the greenback, helping keep the
Canadian dollar from breaking above the three-year high of
$1.2361 touched in mid-March.
    "While we expect some of the jump in jobs to be unwound this
month as a result of Ontario’s lockdown moves, the trend in jobs
and progress on access to vaccines should provide policy makers
with enough confidence in the outlook to at least signal a move
towards tapering asset purchases at the April 21st policy
decision," Shaun Osborne, chief currency strategist at
Scotiabank, said in a note.
    "We look for the Canadian dollar to remain better supported
on dips and to make a bit more progress in the short run back
towards a $1.24 handle," Osborne said.
    Canadian government bond yields were mixed across the curve,
with the 10-year trading at 1.517%, not far from its close on
Friday at 1.5%, while the 2-year traded at 0.247%, down from
Friday's 0.254%.

 (Reporting by Saqib Iqbal Ahmed; Editing by Jonathan Oatis and
Peter Cooney)
  
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