CANADA FX DEBT-C$ slides as bond yields climb on U.S. jobs data

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Canadian dollar weakens 0.7% against the greenback

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For the week, the loonie is on track to decline 0.8%

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Greater Toronto Area home prices fall 1.2% in January

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Canadian bond yields rise across the curve

TORONTO, Feb 3 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday, with the currency on track to end its weekly winning streak after data showed the U.S. economy adding many more jobs than expected in January.

The U.S. dollar rose against a basket of major currencies and bond yields climbed as U.S. nonfarm payrolls surged 517,000 jobs last month, although a further moderation in wage gains should give the Federal Reserve some comfort in its fight against inflation.

Domestic data showed that home prices in the Greater Toronto Area fell 1.2% in January from December and were down about 22% from their February peak, as higher borrowing costs weighed on the once-red-hot housing market in Canada's most populous city.

Last week, the Bank of Canada raised its benchmark rate to a 15-year high of 4.50%, but investors are betting that it will shift to rate cuts by the end of 2023.

The Canadian dollar was trading 0.7% lower at 1.3410 per greenback, or 74.57 U.S. cents. It has pulled back from its strongest level in 2-1/2 months, which it touched on Thursday at 1.3260.

For the week, it was set to decline 0.8%, following a streak of six straight weekly gains.

The price of oil, one of Canada's major exports, rose 0.9% to $76.58 a barrel but was headed for a second week of losses as investors sought more clarity on an imminent European Union embargo on Russian refined fuels.

Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries.

The 10-year rose 6 basis points to 2.895%, while it was trading 3.2 basis points further below the equivalent U.S. rate to a gap of 59.5 basis points. (Reporting by Fergal Smith; editing by Jonathan Oatis)