* Canadian dollar at C$1.3190, or 75.82 U.S. cents
* Bond prices lower across steeper yield curve
* 10-year yield touches three-week high at 1.235 percent
TORONTO, Oct 11 The Canadian dollar weakened
slightly against its U.S. counterpart on Tuesday as the
greenback made broad-based gains and oil prices steadied.
Modest losses for the loonie came one day after its biggest
rally since June as oil surged and doubts grew over Republican
presidential candidate Donald Trump's prospects to win the White
House in the Nov. 8 election.
Trump has said he would renegotiate or scrap the North
American Free Trade Agreement if he is elected.
The U.S. dollar rose to an 11-week high against a
basket of major currencies as investors upped their bets on the
U.S. Federal Reserve raising interest rates before the end of
Oil steadied amid concerns that a production cut by the
world's largest exporters might not be enough to erode a
two-year global crude surplus. The price of U.S. crude
fell 0.14 percent to $51.28 a barrel.
At 9:23 a.m. EDT (1323 GMT), the Canadian dollar
was trading at C$1.3190 to the greenback, or 75.82 U.S. cents,
slightly weaker than Monday's close of C$1.3175, or 75.90 U.S.
cents, according to Reuters data.
The Canadian currency's strongest level of the session was
C$1.3164, while its weakest was C$1.3238.
The loonie's official close on Friday was C$1.3285 to the
greenback, or 75.27 U.S. cents. Monday was a market holiday in
Still, the loonie rose against some other major currencies.
Against the euro, it touched its strongest level in more than
two weeks at C$1.4616.
Canadian housing starts surged in September compared with
August, the national housing agency reported on Tuesday. The
seasonally adjusted annualized rate of housing starts rose to
220,617 units from a 184,201-unit rate in August.
The stronger-than-expected housing starts followed data on
Friday which showed the economy created 67,200 jobs in
September, far more than expected.
Speculators increased bearish bets on the Canadian dollar,
Commodity Futures Trading Commission data showed on Friday. Net
short Canadian dollar positions increased to 14,077 contracts in
the week ended Oct. 4 from 11,615 in the prior week.
Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
fell 2.5 Canadian cents to yield 0.606 percent and
the benchmark 10-year declined 38 Canadian cents to
yield 1.211 percent.
The 10-year yield touched its highest level since Sept. 20
at 1.235 percent.
(Reporting by Fergal Smith; Editing by Paul Simao)