CANADA FX DEBT-Canadian dollar falls on weakness in crude oil
* Canadian dollar at C$1.3367 or 74.81 U.S. cents * Bond prices mixed across the maturity curve TORONTO, Nov 27 (Reuters) - The Canadian dollar weakened against a broadly firmer U.S. dollar on Friday, pressured by a drop in crude oil prices amid fresh volatility in Chinese stocks, while Canadian producer prices fell more than expected. Crude oil futures fell as disappointing Chinese data and worries over a global energy supply glut overshadowed geopolitical concerns. Chinese shares sank more than 5 percent after Reuters reported the stock regulator had widened its probe on brokerages to include the country's fourth-biggest securities firm. At 9:48 a.m. EST (1448 GMT), the Canadian dollar was trading at C$1.3367 to the greenback, or 74.81 U.S. cents, weaker than the Bank of Canada's official close of C$1.3294, or 75.22 U.S. cents. The currency's strongest level of the session was C$1.3292, while its weakest was C$1.3369, a three-day low. Canadian producer prices fell 0.5 percent in October, falling for a third consecutive month. A 0.1 percent drop had been expected, according to a Reuters poll. Canadian government bond prices were mixed across the maturity curve, with the two-year price flat to yield 0.626 percent and the benchmark 10-year rising 7 Canadian cents to yield 1.566 percent, having hit a three-week low at 1.547 percent ahead of December 1 coupon and maturity payments. The curve flattened as the spread between the 2-year and 10-year yields narrowed by 1 basis point to 93.9 basis points, extending the recent outperformance of the 10-year bond. Canada-U.S. spreads narrowed as Treasuries firmed following the U.S. Thanksgiving Day holiday, with the 2-year spread at -30.0 basis points and the 10-year spread at -65.0 basis points. U.S. crude prices were down 2.39 percent to $42.01 a barrel, while Brent crude lost 0.48 percent to $45.24. (Reporting by Fergal Smith; Editing by Bernadette Baum)
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