CANADA FX DEBT-Loonie near flat as Middle East tensions lessen risk appetite

    * Canadian dollar trades near unchanged against the
    * Price of U.S. oil rises 3.7%
    * Canadian bond prices rise across a flatter yield curve
    * 10-year yield touches a near one-month low at 1.546%.

    TORONTO, Jan 3 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Friday after escalation
of geopolitical tensions in the Middle East boosted safe-haven
assets, including the greenback.
    The U.S. dollar        rose against a basket of other major
currencies, stocks          fell globally and U.S. oil prices
       surged 3.7% after a U.S. air strike killed a top Iranian
commander in Iraq, ratcheting up tensions between the two
    Canada is a major exporter of oil. But it also runs a
current account deficit, so its economy could be hurt by a
reduced flow of global capital.
    At 9:10 a.m. (1410 GMT), the Canadian dollar          was
trading nearly unchanged at 1.2984 to the greenback, or 77.02
U.S. cents. The currency traded in a range of 1.2961 to 1.3005.
    The commodity-linked loonie has benefited in recent weeks
from easing of the trade conflict between the United States and
China and signs of recovery in the global economy.
    On Tuesday, the loonie notched a 14-month high at 1.2952.
The currency strengthened 5% in 2019, making it the top
performing G10 currency, as the Bank of Canada kept interest
rates on hold throughout the year even as some major central
banks such as the Federal Reserve and the European Central Bank
    Canadian government bond prices were higher across a flatter
yield curve on Friday in sympathy with U.S. Treasuries. The
two-year            price was up 3 Canadian cents to yield
1.645% and the benchmark 10-year             rose 43 Canadian
cents to yield 1.576%.
    The 10-year yield touched its lowest intraday since Dec. 4
at 1.546%.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)