* Canadian dollar down at 99.26 U.S. cents
* Bonds lower across curve
By Claire Sibonney
TORONTO, April 12 (Reuters) - The Canadian dollar weakened against the U.S. dollar on Monday after euro zone finance ministers agreed to a rescue package for Greece, triggering a broader rally in the European currency.
The ministers approved a 30 billion euro ($40.5 billion) aid package of loans, which Greece could tap if needed, with at least 10 billion euros also expected from the International Monetary Fund. For details see [ID:nLDE63A0BO]
"It's primarily due to cross-selling of Canada and buying of euro. Euro was obviously the big mover with the over-the-top bailout announcement that came through," said Firas Askari, head of foreign exchange trading at BMO Capital Markets.
"There isn't too much going on outside the European deal that was announced, where they basically threw everything but the kitchen sink, and the kitchen sink, at the issue."
At 7:56 a.m. (1156 GMT), the Canadian dollar CAD=D3 fell to C$1.0075 or 99.26 U.S. cents, down from Friday's close of C$1.0040 to the U.S. dollar, or 99.60 U.S. cents.
"Right now most people are long the Canadian dollar, and you know, they're looking for levels to maybe add, but I don't think anyone is worried about Canada weakening off too much," Askari added.
Oil prices fell below $85 a barrel and gold neared a four-month high. [O/R] [GOL/], which could also affect Canada's currency.
Canadian bond prices were lower across the curve, following U.S. Treasures down as the deal for Greece sapped demand for lower-risk government debt. [US/]
The two-year government bond CA2YT=RR lost 3 Canadian cents at C$99.340 to yield 1.858 percent, while the 10-year bond CA10YT=RR dropped 19 Canadian cents to C$100.580 to yield 3.675 percent.
(Reporting by Claire Sibonney; Editing by Padraic Cassidy)