CANADA FX DEBT-C$ softens as greenback rises, crude prices dip
* Canadian dollar at C$1.2484 or 80.10 U.S. cents * Bond prices higher across the maturity curve TORONTO, June 1 (Reuters) - The Canadian dollar retreated against the greenback on Monday as crude prices fell amid a stronger U.S. dollar and expectations that OPEC production levels would remain elevated, fueling ongoing worries about an excess global supply of oil. The 12-member Organization of the Petroleum Exporting Countries (OPEC) will meet on Friday and is expected to maintain its current production policy, which will likely keep crude prices under pressure. The loonie's correlation with the price of crude, a major Canadian export, has been fairly tight, as demonstrated on Friday when the currency shrugged off soft Canadian data amidst higher oil prices. * At 9:27 a.m. EDT (1327 GMT), the Canadian dollar was trading at C$1.2484 to the greenback, or 80.10 U.S. cents, softer than the Bank of Canada's official close of C$1.2437, or 80.41 U.S. cents on Friday. * The currency has so far traded between C$1.244 and C$1.2503 on Monday. * U.S. consumer spending was unexpectedly flat in April, suggesting the economy was struggling to gain momentum early in the second quarter. * Currency direction will be driven by a raft of U.S. and Canadian data this week, including twin payrolls data for May, due at 8:30 a.m. EDT on Friday. * U.S. crude prices were down 0.17 percent to $60.2, while Brent crude lost 0.49 percent to $65.24. * The Canadian dollar, which was underperforming its key currency counterparts, is expected to trade between C$1.2440 and C$1.2525 against the U.S. dollar on Monday, according to RBC Capital Markets. * Canadian government bond prices were higher across the maturity curve, with the two-year price up 4 Canadian cents to yield 0.550 percent and the benchmark 10-year rising 25 Canadian cents to yield 1.598 percent. * The Canada-U.S. two-year bond spread was -5.9 basis points, while the 10-year spread was -52.5 basis points. (Reporting by Solarina Ho; Editing by Nick Zieminski)
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