CANADA FX DEBT-C$ drops as U.S. data lifts greenback

* Canadian dollar at C$1.2069 or 82.86 U.S. cents
    * Bond prices mostly lower across the maturity curve

    TORONTO, April 30 (Reuters) - The Canadian dollar retreated
on Thursday as the U.S. dollar turned broadly positive on the
back of economic data, reversing initial gains made by the
loonie following Canadian February growth figures that modestly
exceeded expectations.
    The Canadian economy stalled in February, with growth in the
retail sector offset by declines elsewhere, including
manufacturing. Still, the steady gross domestic product figure
topped economists' forecasts for a 0.1 percent retreat, though
January's gross domestic product was revised lower to a drop of
0.2 percent. 
    The Canadian data was overshadowed by U.S. numbers,
including figures that showed the pace of jobless claims fell to
its lowest level since 2000 last week and consumer spending rose
in March. 
    * At 9:21 a.m. EDT (1321 GMT), the Canadian dollar 
was trading at C$1.2066 to the greenback, or 82.88 U.S. cents,
softer than the Bank of Canada's official close on Wednesday of
C$1.2023, or 83.17 U.S. cents.
    * The currency's strongest level of the session was C$1.1998
Its weakest was C$1.2069.
    * U.S. crude prices were up 0.09 percent at $58.63,
while Brent crude lost 0.35 percent to $65.61. 
    * The Canadian dollar is expected to trade between C$1.1950
and C$1.2115 against the U.S. dollar on Thursday, according to
National Bank Financial.
    * Canadian government bond prices were mostly lower across
the maturity curve, with the two-year price down 3.5
Canadian cents to yield 0.698 percent and the benchmark 10-year
 falling 32 Canadian cents to yield 1.618 percent.
    * The Canada-U.S. two-year bond spread was 9.5 basis points,
while the 10-year spread was -47.1 basis points.

 (Reporting by Solarina Ho; Editing by Peter Galloway)