* Canadian dollar dips 0.1 percent against the greenback
* Price of U.S. oil falls 0.8 percent
* Bond prices trade lower across the yield curve
* Canada-U.S. 10-year spread widens by 2.1 basis points
TORONTO, Oct 29 (Reuters) - The Canadian dollar edged lower against its broadly stronger U.S. counterpart on Monday, trading in a narrow range as stocks rose and oil prices declined.
Wall Street bounced back from a steep sell-off last week, helped by gains in auto stocks. runs a current account deficit and exports many commodities, including oil, so its economy tends to benefit when capital flows freely.
Still, concern over the global economy put crude on track for its biggest monthly fall since mid-2016. U.S. crude oil futures CLc1 were down 0.8 percent at $67.02 a barrel. U.S. dollar .DXY climbed against a basket of currencies after a report that German Chancellor Angela Merkel will not seek re-election as party chairwoman weighed on the euro. 10:02 a.m. (1402 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent lower at 1.3111 to the greenback, or 76.27 U.S. cents. The currency, which on Friday hit a six-week low intraday at 1.3160, traded in a range of 1.3083 to 1.3118.
The loonie dipped 0.1 percent last week even as the Bank of Canada raised interest rates for the fifth time since July 2017 and said it might speed up the pace of future hikes given that the economy was running at almost full capacity and did not need any stimulus. have cut bearish bets on the Canadian dollar to the lowest since March, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of Oct. 23, net short positions had decreased to 7,228 contracts from 11,019 a week earlier. government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 1.5 Canadian cents to yield 2.274 percent and the benchmark 10-year CA10YT=RR declined 4 Canadian cents to yield 2.399 percent.
The gap between Canada's 10-year yield and its U.S. equivalent widened by 2.1 basis points to a spread of 70.3 basis points in favor of the U.S. bond.