* Canadian dollar at C$1.3301, or 75.18 U.S. cents
* Loonie touches its weakest since Thursday at C$1.3304
* Bond prices lower across flatter yield curve
* Bank of Canada set to auction C$3 billion of 10-year bonds
TORONTO, June 21 (Reuters) - The Canadian dollar weakened on Wednesday for the third straight day against its U.S. counterpart, as depressed oil prices offset the Bank of Canada's recent shift to a more hawkish stance.
U.S. crude CLc1 prices were up 0.09 percent at $43.55 a barrel. Oil is one of Canada's major exports. O/R
At 9:37 a.m. EDT (1337 GMT), the Canadian dollar CAD=D4 was trading at C$1.3301 to the greenback, or 75.18 U.S. cents, down 0.3 percent.
The currency's strongest level of the session was C$1.3263, while it touched its weakest since Thursday at C$1.3304.
The Bank of Canada's top two officials said last week that rate cuts put in place in 2015 had largely done their work, and the bank would assess whether rates need to be kept at near-record lows. the Bank of Canada caught markets by surprise last week in laying the groundwork for interest rate hikes, it may have been because traders missed - or ignored - signals the central bank was already sending. government bond prices were mixed across a flatter yield curve, with the two-year CA2YT=RR down 2 Canadian cents to yield 0.921 percent and the 10-year CA10YT=RR rising 2 Canadian cents to yield 1.498 percent.
The Bank of Canada will auction C$3 billion of 10-year bonds on behalf of the federal government. The bidding deadline is 12 p.m. EDT (1600 GMT).
Falling oil prices have helped support Canadian government bonds and "should support today's auction," Benjamin Reitzes, senior economist at BMO Capital Markets, said in a research note.
Canadian retail sales data for April is due out on Thursday, while inflation data for May is due on Friday ECONCA .