CANADA FX DEBT-C$ rebounds from 3-mth low, helped by oil
* C$ recovers to C$0.9883, or $1.0118
* Currency recovers slightly as oil pares some losses
* Bond prices mostly weaker, long end soft
By Trish Nixon
TORONTO, June 27 (Reuters) - Canada's dollar pared losses after hitting its weakest level in three months on Monday, helped by a recovery in oil prices, though an upcoming vote aimed to prevent a Greek debt default weighed on sentiment.
Greek lawmakers will begin debating a 28 billion euro ($40 billion) package of measures to increase taxes and cut fiscal spending that is critical to winning a new round of international funding to keep it afloat. [ID:nLDE75P0BM]
"Overnight we saw that test of the 200-day moving average, just above the C$0.9911 marker, and I do think that Canada has now found some pretty good offers," said C.J. Gavsie, managing director of foreign exchange sales at BMO Capital Markets.
"With (oil) bouncing back after cracking that $90 barrier it definitely showed that Canada should hold its recent ranges ... if oil continues to track south we definitely are going to be moving (weaker)."
Oil prices seesawed in choppy trading on Monday, bouncing off recent lows, as Greek and European leaders worked to fashion a solution to Athens' debt woes. U.S. August crude CLQ1 was still down 68 cents to $90.48 a barrel. [O/R]
Oil is a major Canadian export and movements in its price often drive movements in the currency.
The Canadian dollar earlier on Monday slid to $0.9914 to the U.S. dollar, or $1.0087, its weakest level since March 17.
At 2:00 p.m. (1600 GMT) the currency CAD=D4 stood at C$0.9883 to the U.S. dollar, or $1.0118. This compared with Friday's North American finish at C$0.9870 to the U.S. dollar, or $1.0132.
Canadian bond prices were mostly lower, mirroring losses in U.S. Treasuries, which were hurt by some easing in concerns about the risk of a Greek debt default. [US/]
The two-year Canadian government bond CA2YT=RR fell 1 Canadian cent to yield 1.391 percent. The 30-year bond CA10YT=RR fell 75 Canadian cents to yield 3.403 percent.
Canadian bond mostly outperformed their U.S. counterparts, with the difference in yield between the 30-year benchmarks widening to 85.4 basis points from 82.3 on Friday. (Editing by Jeffrey Hodgson)
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