CANADA FX DEBT-C$ softens as US$ rallies on Fed outlook, GDP data
* Canadian dollar at C$1.2993 or 76.96 U.S. cents * Bond prices mixed across the maturity curve TORONTO, July 30 (Reuters) - The Canadian dollar retreated against a rallying greenback on Thursday, but was off session lows, as markets cheered the Federal Reserve's relatively upbeat outlook for the U.S. economy and solid U.S. economic growth data. Data showed accelerating U.S. growth in the second quarter and a large upward revision of the first quarter, supporting the view that the Federal Reserve is set to raise interest rates this year. The U.S. dollar's strength offset the impact on the loonie of a rebound in prices for crude, a major Canadian export. * At 9:13 a.m. EDT (1313 GMT), the Canadian dollar was at C$1.2993 to the greenback, or 76.96 U.S. cents, weaker than the Bank of Canada's official close of C$1.2944, or 77.26 U.S. cents, on Wednesday. * The loonie briefly softened to C$1.3025 against the U.S. dollar, or 76.78 U.S. cents, after the U.S. gross domestic product data. * U.S. GDP expanded at a 2.3 percent annual rate in the second quarter, a solid rebound from the first quarter, which was revised to a 0.6 percent gain versus the previously reported 0.2 percent decline.. * Data from Statistics Canada showed nonfarm payroll jobs rose by 16,500 in May, a slightly slower pace than April's 27,600 increase, with the largest gains seen in the accommodation and construction sectors. The separate Labor Force Survey previously released by the agency had shown the economy added 58,900 jobs in May. Some economists say the payrolls report may be more accurate than the widely watched labor force survey. * Canadian government bond prices were mixed across the maturity curve, with the two-year price down 2 Canadian cents to yield 0.47 percent and the benchmark 10-year rising 5 Canadian cents to yield 1.513 percent. * The Canada-U.S. two-year bond spread widened to -26.1 basis points, while the 10-year spread widened to -76.7 basis points. (Reporting by Solarina Ho; Additional reporting by Leah Schnurr; Editing by Peter Galloway)
© Thomson Reuters 2017 All rights reserved.