CANADA FX DEBT-C$ slightly weaker as investors eye Greek deal
* C$ at C$0.9941 to US$, or $1.0059 * Greek deal expected; disappointment could roil markets * Stalled U.S. budget discussions also weigh By Alastair Sharp TORONTO, Nov 26 (Reuters) - The Canadian dollar was slightly weaker in early trade on Monday as investors awaited the results of Greek debt aid talks and worried about pending U.S. tax hikes and spending cuts. Euro zone finance ministers and the International Monetary Fund are attempting to release emergency aid for Greece for the third time in as many weeks, but they first need to agree if some of the official loans to Athens might eventually be forgiven to cut Greek debt. "The market is probably set up for something fairly decisive today (on Greece)," said Adam Cole, global head of FX strategy at RBC Capital Markets in London. "If they fail to agree yet again it could be quite violently negative." U.S. lawmakers have made little progress in the past 10 days toward a compromise to avoid the "fiscal cliff" of harsh tax increases and government spending cuts due to start to kick in in the new year, a senior Democratic senator said on Sunday. At 9:07 a.m. (1407 GMT) the Canadian dollar was trading at C$0.9941 to the greenback, or $1.0059, compared with C$0.9920, or $1.0081, at Friday's North American close. The two-year bond was up 3 Canadian cents to yield 1.108 percent, while the benchmark 10-year bond was up 25 cents to yield 1.758 percent.
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