CANADA FX DEBT-C$ tumbles to 11-year lows as oil dives 4 pct on China
* Canadian dollar at C$1.3249 or 75.48 U.S. cents * Bond prices higher across the maturity curve TORONTO, Aug 24 (Reuters) - The Canadian dollar sank against its U.S. counterpart on Monday, to its lowest level in 11 years, as crude prices fell 4 percent after Chinese stock markets took their biggest one-day hit since the financial crisis. A recent string of disappointing data out of China, including a survey on Friday that showed further deterioration in the country's manufacturing activity, sparked expectations Beijing might take steps to sooth markets. Chinese stocks fell nearly 9 percent after no move was made. Worries that stalling growth in one of the world's largest economies and commodities consumers will spur a global economic slowdown drove dramatic declines in global equities and commodities. At 9:25 a.m. EDT (1325 GMT), the Canadian dollar was trading at C$1.3249 to the greenback, or 75.48 U.S. cents, sharply lower than the Bank of Canada's official close on Friday of C$1.3169, or 75.94 U.S. cents. A weak greenback, which fell to its lowest level in two months against a basket of major currencies, was not enough to support to the loonie, which fell along side other commodities-sensitive currencies. The price of crude, a significant Canadian export, fell as low as $38.59 a barrel, after having already suffered its longest weekly losing streak since 1986 last week. The Canadian dollar is expected to trade between C$1.3210 and C$1.3310 against the U.S. dollar on Monday, according to Royal Bank of Canada. Canadian government bond prices were higher across the maturity curve, with the two-year price up 6 Canadian cents to yield 0.299 percent and the benchmark 10-year rising 56 Canadian cents to yield 1.21 percent. The Canada-U.S. two-year bond spread was -25.7 basis points, while the 10-year spread was -73.5 basis points. (Reporting by Solarina Ho; Editing by Meredith Mazzilli)
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