* Canadian dollar at C$1.2637, or 79.13 U.S. cents
* Bond prices mostly higher across the maturity curve
TORONTO, Oct 23 (Reuters) - The Canadian dollar was slightly weaker against its U.S. counterpart on Monday after a big fall to end last week, as investors wait for a rate decision from the Bank of Canada.
At 8:50 a.m. ET (1250 GMT), the Canadian dollar was
trading at C$1.2637 to the greenback, or 79.13 U.S. cents, down 0.1 percent and at its weakest level since late August. The currency had fallen by the most in nine months on Friday as a drop in domestic retail sales bolstered expectations that the central bank would hold steady at a policy announcement on Wednesday after two hikes so far this year. The greenback has meanwhile been boosted by progress on U.S. tax reforms that raised the prospects of a fiscal lift to its economy. The European Central Bank is also due to make a closely-watched policy announcement this week in which it is expected to start trimming its monthly asset purchases. Canadian government bond prices were mostly higher across
the maturity curve, with the two-year price flat to yield 1.473 and the benchmark 10-year up 8 Canadian
cents to yield 2.021 percent. The Canada-U.S. two-year bond spread was -9.7 basis points, while the 10-year spread was -35.6 basis points. Prices for oil, a major Canadian export, were steady, with
U.S. crude up 0.14 percent at $51.91 a barrel and Brent
down 0.35 percent at $57.55.
(Reporting by Alastair Sharp; Editing by Susan Thomas)