CANADA FX DEBT-Canadian dollar modestly stronger after Friday's selloff

    * Canadian dollar at C$1.3251 or 75.45 U.S. cents
    * Bond prices rise across the maturity curve

    NEW YORK, Dec 9 (Reuters) - The Canadian dollar gained
modestly against the greenback on Monday, but held on to much of
the losses sustained on Friday after data showed a slump in
domestic jobs, suggesting that the economy was not as resilient
as the Bank of Canada had hoped.
    The Canadian job market lost 71,200 net positions in
November while the unemployment rate rose to 5.9%, the highest
in more than a year, data from Statistics Canada showed.
Analysts had forecast a gain of 10,000 jobs.             
    The Canadian dollar          tumbled to 1.3269 to the U.S.
dollar, or 75.35 cents U.S, after the jobs report.
    It retraced a small portion of these losses to trade at
$1.3251, or 75.45 cents on Monday.
    The Bank of Canada has talked up the country’s strong
employment picture, with Bank of Canada Deputy Governor Timothy
Lane saying on Thursday that the labor market, particularly in
the service sector, has been underpinning the economy.
    Bank of Canada Governor Stephen Poloz is due to speak on
Thursday. The central bank said on Friday that Poloz will step
down when his seven-year mandate expires in June, which market
players had expected.              
    Data on Monday also painted a disappointing picture of
Canadian housing.
    Statistics Canada said that the value of Canadian building
permits fell by 1.5% in October from September. Analysts
surveyed by Reuters had expected an increase of 3.0%.
    Canadian government bond prices were higher across the
maturity curve on Monday, with the two-year            price up
2.5 Canadian cents to yield 1.641% and the benchmark 10-year
            rising 25 Canadian cents to yield 1.552%.

 (Reporting by Karen Brettell; editing by Jonathan Oatis)