CANADA FX DEBT-C$ weakens as broad-based gains for greenback offset higher oil

* Canadian dollar at C$1.3207, or 75.72 U.S. cents
    * Bond prices lower across steeper yield curve

    TORONTO, Oct 6 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as the greenback made
broad-based gains, but losses for the loonie were restrained as
oil rose.
    Growing expectations that U.S. interest rates will rise
before the end of the year lifted the U.S. dollar against
a basket of major currencies. 
    U.S. crude prices were up 0.72 percent at $50.19 a
barrel, underpinned by data on Wednesday that showed a
surprisingly large drop in U.S. inventory levels. 
    At 9:28 a.m. EDT (1328 GMT), the Canadian dollar 
was trading at C$1.3207 to the greenback, or 75.72 U.S. cents,
weaker than Wednesday's close of C$1.3182, or 75.86 U.S. cents.
    The currency's strongest level of the session was C$1.3177,
while its weakest was C$1.3220.
    Still, the loonie outperformed some other major currencies.
Against the Japanese yen, it touched its highest in nearly four
weeks at 78.81 yen. 
    Strategists expect the Canadian dollar to strengthen over
the coming year as higher oil prices provide support, but
monetary policy divergence and U.S. election risk should
restrain the currency in the near term, a Reuters poll found.
    Bank of Canada Senior Deputy Governor Carolyn Wilkins will
speak on economic trends and monetary policy, and the central
bank will release her prepared remarks at 11:35 a.m. EDT (1535
GMT). Investors will look for signs of how the bank expects
growth to shape up in the second half of the year.       
    Investors are also awaiting U.S. and Canadian employment
reports on Friday. Canada is expected to show the economy added
10,000 jobs in September, keeping the unemployment rate at 7.0
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
 fell 1.5 Canadian cents to yield 0.586 percent, and
the benchmark 10-year declined 42 Canadian cents to
yield 1.136 percent.
    Earlier, the 10-year matched Wednesday's intraday high at
1.141 percent, which was the highest in nearly two weeks.

 (Reporting by Fergal Smith; Editing by Lisa Von Ahn)