CANADA FX DEBT-Canadian dollar holds near 2-year high amid vaccine hopes

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* Canadian dollar dips 0.1% against the greenback * The loonie touches its strongest since October 2018 at 1.2916 * Canadian labor productivity falls by a record 10.3% * Canada's 10-year yield touches a near 3-week high at 0.780% TORONTO, Dec 2 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday but held near an earlier two-year high, which it notched as the prospect of a coronavirus vaccine supported investor sentiment. World stock markets held near record highs after Britain approved Pfizer Inc's COVID-19 vaccine, the first Western country to approve a shot for the disease. Investors are hoping a vaccine rollout will boost global economic recovery. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the outlook for the global economy. Oil slipped as the market awaited a pact from producers on output. U.S. crude prices were down 0.3% at $44.43 a barrel, while the Canadian dollar dipped 0.1% to 1.2940 per U.S. dollar, or 77.28 U.S. cents. The currency touched its strongest intraday level since October 2018 at 1.2916. Canadian labor productivity fell by a record 10.3% in the third quarter, as hours worked rebounded faster than business output, Statistics Canada said. That follows a record increase in the second quarter, which was marked by lockdown measures imposed because of the coronavirus pandemic. Canada's jobs report for November is due on Friday, which could help guide expectations for the Bank of Canada policy outlook. The central bank, which has cut its benchmark interest rate to a record low of 0.25%, is due to make a policy decision next week. Canadian government bond yields were higher across the curve, with the 10-year up 1.7 basis points at 0.754%. It touched its highest intraday level since Nov. 13 at 0.780%. (Reporting by Fergal Smith; editing by Jonathan Oatis)