CANADA FX DEBT-C$ slips but on track for biggest weekly gain in 2022

* Canadian dollar weakens 0.1% against the greenback * For the week, the loonie was on track to gain 1.2% * Price of U.S. oil falls 1.2% * Canadian bond yields ease across curve TORONTO, Aug 12 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday as oil prices fell, but the currency was set for its biggest weekly gain this year as signs of U.S. inflation peaking eased worries of aggressive tightening by the Federal Reserve. The loonie was trading 0.1% lower at 1.2780 to the greenback, or 78.25 U.S. cents. For the week, it was on track to gain 1.2%, its biggest weekly advance since December 2021. It touched on Thursday its strongest level in two months at 1.2725. World stocks headed for a fourth straight week of gains as investors scaled back views on how far U.S. interest rates and inflation can climb. Data on Wednesday showed U.S. consumer prices rising at a slower annual pace in July. The price of oil, one of Canada's major exports, has also rallied this week but gave back some of those gains on Friday. U.S. crude prices fell 1.2% to $93.22 a barrel. Canada's inflation report for July is due on Tuesday which could offer clues on the Bank of Canada policy outlook. Canada's inverted yield curve is signaling the Bank of Canada may raise interest rates to a level that triggers a recession, placing the central bank in a tough spot as it aims to tame high inflation and engineer a "soft landing" for the economy. Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries. The 10-year eased 2.8 basis points to 2.759%, pulling back from its highest since Aug. 3 at 2.806% which it touched earlier in the day. (Reporting by Fergal Smith; Editing by Emelia Sithole-Matarise)