CANADA FX DEBT-C$ hits one-week low as oil prices extend decline

* Canadian dollar declines 0.1 percent against the greenback

* Price of U.S. oil falls 1.5 percent

* Loonie touches its weakest since Oct. 11 at 1.3056

* Canada-U.S. 10-year spread widens by 3.3 basis points

TORONTO, Oct 18 (Reuters) – The Canadian dollar weakened to a one-week low against its U.S. counterpart on Thursday as oil prices added to a sharp decline the day before, while domestic data showed that non-farm payroll jobs rose for the eighth consecutive month. Canada added 28,800 jobs in September, helped by a pickup in hiring in the trade, education and health care industries, according to a report from ADP. The number of jobs added in August was revised higher to 42,700 from 13,600. The price of oil, one of Canada’s major exports, slumped to a one-month low, pressured by the fourth weekly increase in U.S. crude inventories.

U.S. crude prices were down 1.5 percent at $68.73 a

barrel.

At 9:01 a.m. (1301 GMT), the Canadian dollar was

trading 0.1 percent lower at 1.3042 to the greenback, or 76.68 U.S. cents. The currency touched its weakest level since Oct. 11 at 1.3056.

The U.S. dollar added to this week’s gains against a

basket of currencies, encouraged by Federal Reserve minutes signaling more interest rate hikes in store. Canadian inflation data for September and the August retail sales report are due on Friday, which could help guide expectations for additional interest rate hikes from the Bank of Canada. Economists expect the central bank to hike next week for the fifth time since July 2017, a Reuters poll showed.

Canadian government bond prices were mixed across the yield

curve, with the 10-year rising 8 Canadian cents to

yield 2.515 percent. The gap between Canada’s 10-year yield and its U.S. equivalent widened by 3.3 basis points to a spread of 68.8 basis points in favor of the U.S. bond.

(Reporting by Fergal Smith Editing by Nick Zieminski)

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