* Canadian dollar at C$1.2521, or 79.87 U.S. cents
* Bond prices lower across a steeper yield curve
* Bank of Canada Deputy Governor Sylvain Leduc due to speak
TORONTO, Oct 3 (Reuters) - The Canadian dollar slipped to a one-month low against its U.S. counterpart on Tuesday as oil prices fell and investors looked to a speech by Bank of Canada Deputy Governor Sylvain Leduc for clues on the central bank's next interest rate decision.
Leduc is scheduled to speak about productivity in the Canadian economy. The central bank will release the deputy governor's prepared remarks at 12:30 p.m. EDT (1630 GMT).
The Bank of Canada has raised rates twice since July, but the chances of another hike as soon as this month have dwindled to around 25 percent from nearly 40 percent before Governor Stephen Poloz signaled last week that a third hike was not imminent. BOCWATCH of oil, one of Canada's major exports, edged lower as speculators took profits on some large positions that have built up in the last couple of weeks. crude CLc1 prices were down 0.59 percent at $50.28 a barrel.
At 9:00 a.m. EDT, the Canadian dollar CAD=D4 was trading at C$1.2521 to the greenback, or 79.87 U.S. cents, down 0.1 percent. The currency's strongest level of the session was C$1.2490, while it touched its weakest since Aug. 31 at C$1.2539.
Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries after U.S. data on Monday backed expectations of another interest rate increase by the Federal Reserve before the end of the year.
The two-year bond CA2YT=RR was down 1 Canadian cent to yield 1.54 percent and the 10-year bond CA10YT=RR declined 20 Canadian cents to yield 2.152 percent, moving closer to last week's three-year high at 2.202 percent.
Canada's trade data for August is due on Thursday and the September employment report is scheduled for release on Friday.