CANADA FX DEBT-Loonie near flat as Middle East tensions lessen risk appetite

* Canadian dollar trades near unchanged against the greenback

* Price of U.S. oil rises 3.7%

* Canadian bond prices rise across a flatter yield curve

* 10-year yield touches a near one-month low at 1.546%.

TORONTO, Jan 3 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday after escalation of geopolitical tensions in the Middle East boosted safe-haven assets, including the greenback.

surged 3.7% after a U.S. air strike killed a top Iranian commander in Iraq, ratcheting up tensions between the two powers. Canada is a major exporter of oil. But it also runs a current account deficit, so its economy could be hurt by a reduced flow of global capital.

trading nearly unchanged at 1.2984 to the greenback, or 77.02 U.S. cents. The currency traded in a range of 1.2961 to 1.3005. The commodity-linked loonie has benefited in recent weeks from easing of the trade conflict between the United States and China and signs of recovery in the global economy. On Tuesday, the loonie notched a 14-month high at 1.2952. The currency strengthened 5% in 2019, making it the top performing G10 currency, as the Bank of Canada kept interest rates on hold throughout the year even as some major central banks such as the Federal Reserve and the European Central Bank eased. Canadian government bond prices were higher across a flatter yield curve on Friday in sympathy with U.S. Treasuries. The

cents to yield 1.576%. The 10-year yield touched its lowest intraday since Dec. 4 at 1.546%.

(Reporting by Fergal Smith; Editing by Steve Orlofsky)