* Lower at C$1.0189 to the US$, or 98.15 U.S. cents * Bonds firmer on weak stocks TORONTO, March 15 (Reuters) - The Canadian dollar saggedagainst the U.S. currency on Monday as oil and equity pricesfell and investors took a breather after the unit notched its11th straight higher close last week. The Canadian currency climbed in the overnight session,peaking at C$1.0165 to the U.S. dollar, or 98.38 U.S. cents,but by 8:37 a.m. (1237 GMT), it retreated slightly to C$1.0189to the U.S. dollar, or 98.15 U.S., from Friday's close atC$1.0183 to the U.S. dollar, or 98.20 U.S. cents. The Canadian currency sagged as risk appetite waned. Oilprices, a key Canadian export, dropped below $81 a barrel andU.S. stock index futures fell amid ongoing China monetarypolicy concerns. [O/R] [.N] "We've been grinding one way. Today ..., instead of a daywhere the Canadian dollar appreciates, maybe it's a day when ittrades sideways," said Steve Butler, director of foreignexchange trading at Scotia Capital Still, Butler said the broader outlook for the Canadiancurrency was positive. "I think the market is getting very comfortable longCanada," he said. "The fundamentals in Canada look relatively strong with thedecent data on Friday. When you compare us to the States, theU.K., the euro zone, the story in Canada looks better." On Friday, the Canadian dollar advanced against the U.S.currency for an 11th straight session, hitting a 20-month high,after firmer-than-expected Canadian employment data providedmore evidence the economy is healing. [CAD/] [ID:nN12154904] Bond prices were firmer on Monday following moves in thebigger U.S. Treasuries market where prices rose against abackdrop of weaker stock markets. [US/] The two-year government bond CA2YT=RR ticked 1 Canadiancent higher to C$99.85 to yield 1.578 percent, while the30-year bond CA30YT=RR was up 5 Canadian cents at C$114.85 toyield 4.090 percent. (Reporting by Jennifer Kwan (http://blogs.reuters.com/search/journalist.php?edition=us&n=jennifer.kwan&); Editing by James Dalgleish (http://blogs.reuters.com/search/journalist.php?edition=us&n=james.dalgleish&))