* Canadian dollar weakens 0.2% against the greenback
* Canadian manufacturing sales rise by a record 20.7% in June
* Price of U.S. oil decreases 0.4%
* Canadian bond yields trade mixed across a flatter curve
TORONTO, Aug 14 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday as investor caution about taking on more risk offset stronger-than-expected domestic manufacturing data, but the loonie held on to most of this week's rally.
The loonie CAD= was trading 0.2% lower at 1.3243 to the greenback, or 75.51 U.S. cents. The currency, which notched on Thursday a six-and-a-half-month high at 1.3188, traded in a range of 1.3206 to 1.3253. For the week, the loonie was up 1.1%.
Canadian manufacturing sales rose by a record 20.7% in June as many factories operated at a much higher capacity than in May, Statistics Canada said. Analysts had forecast a gain of 16.4%.
Global shares .WORLD dipped after lacklustre Chinese economic data and worries about a delay in U.S. fiscal stimulus discouraged some investors who worried that the market's recent rally was over-extended. runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital.
The price of oil was pressured by doubts about demand recovery due to the novel coronavirus pandemic and rising supply. U.S. crude CLc1 prices were down 0.4% at $42.07 a barrel. government bond yields were mixed across a flatter curve, with the 30-year CA10YT=RR down 1.5 basis points at 1.131%. On Thursday, it reached its highest intraday level in more than two months at 1.148%.