CANADA FX DEBT-C$ touches 8-month low as traders expect gradual rate hikes

* Canadian dollar at C$1.3065 or 76.54 U.S. cents

* Bond prices mixed across the maturity curve

March 16 (Reuters) - The Canadian dollar touched a fresh more than eight-month low against the greenback on Friday as the market continued to assess how quickly more interest rate hikes could come in the face of trade uncertainty with the United States.

* At 8:45 a.m. EDT (1245 GMT), the Canadian dollar was trading down 0.1 percent at C$1.3065 to the greenback, or 76.54 U.S. cents.

* The currency's weakest level of the session was C$1.3095, its lowest level since June 28, shortly before the Bank of Canada began raising interest rates last year.

* The declines put the currency on course to lose 2 percent this week, its biggest weekly decline in over a year.

* The loonie has been hit by comments earlier from the head of the Bank of Canada this week that reinforced expectations the central bank can take its time raising rates after hiking three times since last July.

* Markets also expect policymakers may wait for greater clarity on the future of U.S. trade policy after worries about a trade war ramped up after President Donald Trump imposed tariffs on steel and aluminum imports earlier this month.

* While Canada was exempted, Trump said the reprieve would be in place so long as there was progress on talks to renegotiate the North American Free Trade Agreement.

* On the economic front, Canadian factory sales in January fell by 1.0 percent, the biggest drop in six months, on weakness in motor vehicles, as well as aerospace products and parts.

* The report suggests that January economic growth "could look soggy to open the new year," Royce Mendes, economist at CIBC Economics, wrote in a note.

* Separate data showed foreign investment in Canadian securities resumed in January after a dip in December but fell far short of the monthly purchases seen in much of the second half of 2017.

* Canadian government bond prices were mixed across the

maturity curve, with the two-year price down 0.5

Canadian cent to yield 1.763 percent and the benchmark 10-year rising 1 Canadian cent to yield 2.144 percent.

(Reporting by Leah Schnurr in Ottawa Editing by Nick Zieminski)