CANADA FX DEBT-C$ weaker on Greece worries, weaker oil

* Canadian dollar at C$1.2371, or 80.83 U.S. cents
    * Bond prices higher across the maturity curve

    TORONTO, June 29 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday as global uncertainty
mounted after Greece shut its banks, but losses were limited.
    "If this had been two or three years ago it would have been
very negative for the Canadian dollar through the risk-off
channel," but correlation between foreign exchange and equities
has diminished to pre-crisis levels, said currency strategist
Elsa Lignos of RBC Capital Markets. 
    * At 9:14 a.m. EDT (1314 GMT), the Canadian dollar 
was trading at C$1.2371 to the greenback, or 80.83 U.S. cents,
weaker than the Bank of Canada's official close on Friday of
C$1.2315, or 81.20 U.S. cents.
    * The currency's strongest level of the session was
C$1.2304, while its weakest was C$1.2380.
    * Canadian producer prices increased by 0.5 percent in May
from April, largely due to higher prices for energy and
petroleum products, Statistics Canada said. 
    * U.S. crude prices were down 1.73 percent at $58.60,
while Brent crude fell 1.87 percent to $62.08. 
    * Canadian government bond prices were higher across the
maturity curve, with the two-year up 10 Canadian
cents to yield 0.587 percent and the benchmark 10-year
 rising 97 Canadian cents to yield 1.77 percent.
    * The Canada-U.S. two-year bond spread was -7 basis points,
while the 10-year spread was -59.9 basis points.

 (Reporting by Alastair Sharp; Editing by Lisa Von Ahn)