CANADA FX DEBT-C$ softens on weaker oil, disappointing China data
* Canadian dollar at C$1.2584 or 79.47 U.S. cents * Bond prices higher across the maturity curve OTTAWA, July 3 (Reuters) - The Canadian dollar weakened against the greenback on Friday as oil prices slipped and as data showed service sector activity slowed in China, a major consumer of commodities. * Investors were also wary of taking aggressive bets heading into Sunday's Greek referendum on the country's bailout terms with lenders. An opinion poll showed supporters of the terms have taken a slim lead. * Talks between Greece and international lenders collapsed last weekend, causing Greece to miss a payment to the International Monetary Fund earlier this week. The fallout from the referendum could determine whether the country remains in the euro zone. * A combination of the uncertainty surrounding Greece, dissapointing Canadian economic data and soft oil prices has seen the Canadian dollar lose more than 2 percent since last Friday. * At 8:59 a.m. ET (1259 GMT), the Canadian dollar was trading at C$1.2584 to the greenback, or 79.47 U.S. cents, weaker than the Bank of Canada's official close of C$1.2545, or 79.71 U.S. cents. * The currency's strongest level of the session was C$1.2538, while its weakest level was C$1.26. Still, the loonie did not fall as far as the two-and-a-half-month low it hit on Thursday. * U.S. crude prices were down 0.44 percent to $56.68, while Brent crude lost 0.39 percent to $61.83. * Activity in China's services sector slowed to its lowest in five months in June, data showed, suggesting the economy needs further policy support. * Canadian government bond prices were higher across the maturity curve, with the two-year price up 3.5 Canadian cents to yield 0.472 percent and the benchmark 10-year rising 35 Canadian cents to yield 1.704 percent. * The Canada-U.S. two-year bond spread was -16.3 basis points, while the 10-year spread was -68.2 basis points. (Reporting by Leah Schnurr; Editing by Phil Berlowitz)
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