CANADA FX DEBT-C$ hits 1-month low amid transatlantic trade war fears

    * Canadian dollar declines 0.1% against greenback
    * Loonie touches weakest since Sept. 3 at 1.3346
    * Price of U.S. oil decreases 1.5%
    * Canada's 10-year yield hits near-four-week low at 1.278%

    TORONTO, Oct 3 (Reuters) - The Canadian dollar weakened to a
one-month low against its U.S. counterpart on Thursday after
Washington's move to impose new tariffs on European goods added
to global growth fears.
    World stock markets hovered near four-week lows as investors
worried about a potential tit-for-tat transatlantic trade war.
    Canada exports many commodities, including oil, so its
economy could be hurt by a weaker outlook for global trade.
    U.S. crude oil futures        fell 1.5% to $51.86 a barrel,
pressured by concerns about global economic growth, oil demand
and signs of excess supply despite OPEC-led cuts.
    At 9:27 a.m. (1327 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3341 to the greenback, or 74.96 U.S.
    The currency, which fell on Wednesday by the most in seven
months, touched its weakest intraday level since Sept. 3 at
    Canada's trade report for August is due on Friday, which
could help guide expectations for the Bank of Canada's interest
rate outlook.
    The central bank has worried that trade uncertainty,
including the dispute between the United States and China, is
weighing more heavily on the global economy, but has showed no
appetite for cutting interest rates amid steady domestic
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 2.5 Canadian cents to yield 1.474% and the 10-year
            was up 17 Canadian cents to yield 1.288%.
    The 10-year yield touched its lowest intraday since Sept. 6
at 1.278%.     

 (Reporting by Fergal Smith; Editing by Bernadette Baum)