CANADA FX DEBT-C$ weakens slightly as oil slips
* Canadian dollar at C$1.3065, or 76.54 U.S. cents * Bond prices lower across the maturity curve TORONTO, July 11 (Reuters) - The Canadian dollar weakened slightly against its U.S. counterpart on Monday as oil slipped and global stock markets rose after Japan's prime minister won re-election and ordered fresh stimulus. Domestic monetary policy will be back in focus this week, with the Bank of Canada due to decide on interest rates and update its outlook on Wednesday, following last week's weak jobs and trade data. At 8:32 a.m. EDT (1232 GMT), the Canadian dollar was trading at C$1.3065 to the greenback, or 76.54 U.S. cents, weaker than the Bank of Canada's official Friday close of C$1.3040, or 76.91 U.S. cents. The currency's strongest level of the session was C$1.3030, while its weakest level was C$1.3097. Canadian housing starts rose much more than expected in June from May, data showed on Monday. The Canadian dollar was underperforming most European currencies but was stronger against the yen and the Australian and New Zealand dollars. Japanese Prime Minister Shinzo Abe ordered a new round of fiscal stimulus spending after a crushing election victory over the weekend. Canadian government bond prices were lower across the maturity curve, with the two-year price down 2.5 Canadian cents to yield 0.478 percent and the benchmark 10-year falling 21 Canadian cents to yield 0.982 percent. The Canada-U.S. two-year bond spread was -16.3 basis points, while the 10-year spread was -42.4 basis points. (Reporting by Alastair Sharp; Editing by Nick Zieminski)
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