CANADA FX DEBT-C$ steady on oil's strength, weaker greenback

* Canadian dollar at C$1.2689, or 78.81 U.S. cents

* Loonie touches its strongest since Oct. 25 at C$1.2666

* Bond prices lower across the yield curve

* 10-year yield touches a 1-week high at 1.976 percent

TORONTO, Nov 10 (Reuters) - The Canadian dollar held near a two-week high against its U.S. counterpart on Friday, benefiting from a recent rise in oil prices and a weakening of the greenback this week.

The U.S. dollar stabilized against a basket of major

currencies but was set for its biggest weekly drop in a month on disappointment that a landmark U.S. tax bill may be delayed until 2019. The price of oil, one of Canada's major exports, gained support from continuing supply cuts and expectations that an output deal would be extended at the end of the month.

U.S. crude was unchanged at $57.17 a barrel. Earlier

this week, it reached a more than two-year high of nearly $58.

At 9:14 a.m. ET (1414 GMT), the Canadian dollar was

little changed at C$1.2689 to the greenback, or 78.81 U.S. cents. The currency's weakest level of the session was C$1.2694, while it touched its strongest since Oct. 25 at C$1.2666. A planned meeting of leaders of the 11 countries in the Trans Pacific Partnership to decide on the fate of the trade pact did not take place on Friday, amid disagreements over how to take it forward without the United States. Canada, whose economy is the second-largest among the TPP-11 after Japan, has said it would not be rushed into a revived deal. Like Mexico, its position is further complicated by renegotiation of the North American Free Trade Agreement with the United States. Canadian government bond prices were lower across much of yield curve in sympathy with U.S. Treasuries. The two-year fell 2.5 Canadian cents to yield 1.465 percent, and

the 10-year declined 27 Canadian cents to yield

1.970 percent. The 10-year yield touched its highest intraday since Nov. 3 at 1.976 percent.

(Reporting by Fergal Smith; Editing by Lisa Von Ahn)