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CANADA FX DEBT-C$ weakens ahead of Trump speech, Bank of Canada

(Adds broker comment, updates prices to close) * Canadian dollar at C$1.3163, or 75.97 U.S. cents * Bond prices lower across the yield curve By Alastair Sharp TORONTO, Feb 27 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday as investors awaited a Tuesday night speech from U.S. President Donald Trump and a Bank of Canada interest rate decision due on Wednesday.

While the central bank is widely expected to hold rates steady, attention will be paid to the comments of policymakers.

"We'll hear them probably talk a bit dovishly to offset some of the more positive data that's come out of Canada recently," said Don Mikolich, executive director for foreign exchange sales at CIBC Capital Markets.

On Friday, the loonie notched a one-week high at C$1.3057 after data showed a spike in domestic inflation.

It settled on Monday at C$1.3163 to the greenback, or 75.97 U.S. cents, weaker than Friday's close of C$1.3101, or 76.33 U.S. cents.

It also fell against a string of other currencies including the euro, the Swiss franc and the Australian dollar.

Bank of Canada Governor Stephen Poloz said in January an interest rate cut remains on the table depending on risks, including "material consequences" if Trump enacts protectionist policies.

Trump's address to a joint session of Congress is expected to preview some elements of his tax and spending plans.

A border adjustment tax is part of a tax reform blueprint proposed by House Republicans. The loonie would be among the biggest losers if it is implemented, analysts say.

The currency's strongest level of the session was C$1.3084, while its weakest level was C$1.3180.

Speculators increased bullish bets on the Canadian dollar to the most since May, data from the Commodity Futures Trading Commission and Reuters calculations showed on Friday. Canadian dollar net long positions rose to 24,584 contracts as of Feb. 21 from 19,340 a week earlier.

Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries, with the two-year price down 3 Canadian cents to yield 0.762 percent and the benchmark 10-year falling 35 Canadian cents to yield 1.647 percent.

On Friday, the 10-year yield touched its lowest in more than two months at 1.599 percent.

(Additional reporting by Fergal Smith; Editing by James Dalgleish)