* Canadian dollar at C$1.2722, or 78.60 U.S. cents
* Bond prices mixed across the yield curve
TORONTO, Aug 16 (Reuters) - The Canadian dollar rebounded on Wednesday from a one-month low hit the day before against its U.S. counterpart, helped by higher oil prices, while investors awaited the start of negotiations to modernize the North American Free Trade Agreement.
Prices of oil, one of Canada's major exports, were lifted by declining U.S. crude inventories, although markets were still restrained by excess supply. crude CLc1 prices were up 0.19 percent to $47.64 a barrel.
The United States, Canada and Mexico are due to kick off NAFTA talks later in the day. The biggest uncertainty is whether a deal can pass U.S. President Donald Trump's "America First" test. 9:05 a.m. ET (1305 GMT), the Canadian dollar CAD=D4 was trading at C$1.2722 to the greenback, or 78.60 U.S. cents, up 0.3 percent.
The currency traded in a range of C$1.2712 to C$1.2770.
On Tuesday, the loonie hit its lowest level since July 12 at C$1.2778, pressured by broader gains for the greenback as North Korea tensions eased and data showed a jump in U.S. retail sales.
Foreign investors sold a net C$923 million ($724.83 million) in Canadian securities in June after buying C$29.44 billion in securities in May, Statistics Canada said. It was the first monthly divestment since July 2015. government bond prices were mixed across the yield curve, with the two-year CA2YT=RR price up 0.5 Canadian cent to yield 1.241 percent and the 10-year CA10YT=RR falling 3.5 Canadian cents to yield 1.912 percent.
Canada's inflation data for July is due on Friday. ECONCA