CANADA FX DEBT-C$ hurt by retreat in crude prices

* Canadian dollar at C$1.3335, or 74.99 U.S. cents
    * Bond prices higher across the maturity curve

    TORONTO, Sept 28 (Reuters) - The Canadian dollar flirted
with 11-year lows against its U.S. counterpart on Monday as
volatile crude oil prices took a negative turn, at one point
falling more than 2 percent on worries over weak global demand.
    The price of crude, a major Canadian export, has plunged by
more than half in the last year, dragging the loonie along some
20 percent in that time.
    * At 9:56 a.m. EDT (1356 GMT), the Canadian dollar 
was trading at C$1.3335 to the greenback, or 74.99 U.S. cents,
softer than the Bank of Canada's official close of C$1.3316, or
75.10 U.S. cents.
    * The loonie traded between C$1.3319 and C$1.3379 so far on
Monday. Last week, it briefly touched C$1.3417, or 74.53 U.S.
cents, its weakest level since June 2004.
    * Potentially market-moving reports on tap this week include
Canadian gross domestic product figures for July, due out on
Wednesday, and U.S. labour data for September, on Friday.
    * U.S. crude prices were down 1.95 percent at $44.81,
while Brent crude lost 1.98 percent to $47.64. 
    * Despite the Canadian dollar's weakness against the
greenback, the currency was stronger than most of its key
counterparts. It is expected to trade between C$1.3315 and
C$1.3400 against the U.S. dollar on Monday, according to RBC
Capital Markets.
    * Canadian government bond prices were higher across the
maturity curve, with the two-year price up 2 Canadian
cents to yield 0.532 percent and the benchmark 10-year
 rising 43 Canadian cents to yield 1.479 percent.
    * The Canada-U.S. two-year bond spread was -16.1 basis
points, while the 10-year spread was -65.3 basis points.

 (Reporting by Solarina Ho; Editing by Lisa Von Ahn)