CANADA FX DEBT-C$ weakens ahead of Poloz speech as greenback climbs

* Canadian dollar at C$1.2387, or 80.73 U.S. cents

* Investors await speech by Bank of Canada Governor Stephen Poloz

* Bond prices lower across a steeper yield curve

* 10-year yield touches a 3-year high at 2.202 pct

TORONTO, Sept 27 (Reuters) - The Canadian dollar weakened on Wednesday against its U.S. counterpart ahead of a speech by Bank of Canada Governor Stephen Poloz, as the greenback posted broader gains against a basket of major currencies.

The U.S. dollar climbed as optimism about U.S. fiscal

reforms and hawkish talk from Fed Chair Janet Yellen pushed bond yields higher. Data showing a stronger-than-expected increase in U.S. core capital goods also gave the greenback a boost. Canada's central bank governor will deliver an economic progress report, followed by a news conference. After interest rate hikes in July and September, markets will be looking for clues as to how aggressively the bank may tighten from here. The central bank will release Poloz's prepared remarks at 11:45 a.m. ET (1545 GMT). Money markets see a 37-percent chance of another hike in October, while a hike by December is almost fully discounted.

At 9:10 a.m. ET (1310 GMT), the Canadian dollar was

trading at C$1.2387 to the greenback, or 80.73 U.S. cents, down 0.3 percent. The currency's strongest level of the session was C$1.2346, while it touched Monday's near 3-week low at C$1.2413. Prices of oil, one of Canada's major exports, edged higher, helped by an unexpected drop in U.S. crude inventories. U.S.

crude prices were up 0.37 percent at $52.07 a barrel.

Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries. The two-year fell 5.5 Canadian cents to yield 1.639 percent and

the 10-year declined 62 Canadian cents to yield

2.188 percent. The 10-year yield touched its highest intraday since September 2014 at 2.202 percent.

(Reporting by Fergal Smith; Editing by Nick Zieminski)