* Canadian dollar at C$1.3464, or 74.27 U.S. cents
* Bond prices dip slightly across much of the yield curve
* 10-year yield touches a six-week high at 1.838 percent.
By Fergal Smith
TORONTO, March 10 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday as stronger-than-expected domestic jobs data offset risks to the economy from an uncertain trade outlook.
The 15,300 increase in Canadian jobs last month topped economists' expectations for a gain of 2,500, data from Statistics Canada showed. It extended the labor market's recent strong run as full-time hiring jumped. good times keep on rolling for the Canadian labor market and the quality of employment also looks a little bit firmer this month," said Nick Exarhos, economist at CIBC Capital Markets.
The chances of a Bank of Canada interest rate hike this year nudged up to nearly 50 percent, data from the overnight index swaps market showed. It was less than 30 percent after the Bank of Canada left rates on hold at the start of the month and focused on the "significant uncertainties" facing the economy. BOCWATCH
"There are still larger risks out there to the Canadian economy in terms of trade," Exarhos said, who does not expect the central bank to turn hawkish just yet despite recent strength in the domestic economy.
Implementation of a proposed U.S. border adjustment tax would reduce the competitiveness of Canada's exports as well as pressure the prices of its key commodities, such as oil, through a stronger U.S. dollar, analysts say. chances of a Bank of Canada rate hike came as data showed U.S. employers hired workers at a robust pace in February, which could give the Federal Reserve the green light to raise interest rates next week despite slowing economic growth. 9:51 a.m. ET (1451 GMT), the Canadian dollar CAD=D4 was trading at C$1.3464 to the greenback, or 74.27 U.S. cents, stronger than Thursday's close of C$1.3508, or 74.03 U.S. cents.
The currency's strongest level of the session was C$1.3421, while its weakest was C$1.3514.
U.S. crude CLc1 prices were unchanged at $49.28 a barrel, steadying after they dropped to their lowest in more than three months on oversupply concerns. is one of Canada's major exports.
Canadian government bond prices were slightly lower across much of a flatter yield curve, with the two-year CA2YT=RR down 2 Canadian cents to yield 0.843 percent and the 10-year CA10YT=RR falling 1 Canadian cent to yield 1.815 percent.
The 10-year yield touched its highest intraday since Jan. 26 at 1.838 percent.