CANADA FX DEBT-C$ steadies after last week's sharp drop

* Canadian dollar at C$1.0800 or 92.59 U.S. cents
    * Bond prices mixed, 10-yr yield at more than 1-yr low

 (Adds details, quotes, updates prices)
    By Leah Schnurr
    TORONTO, July 28 (Reuters) - The Canadian dollar firmed
modestly against the greenback on Monday, steadying after the
previous session's sharp drop, as  investors positioned
themselves ahead of some key economic reports on both sides of
the border this week.
    Still, the currency did not recover very much of last week's
losses, which could lead to more downside after it fell through
some significant technical levels on Friday, analysts said.
    "We're in a bit of a holding pattern ahead of the critical
economic releases this week," said Gareth Sylvester, director at
Klarity FX in San Francisco.
    The Canadian dollar-U.S. dollar pairing faces key technical
resistance at the C$1.0830 area and a break through that could
take it toward C$1.0950, Sylvester said.
    "The fact that (U.S. dollar-Canadian dollar) held onto its
gains and hasn't retreated is a good indication that traders are
willing to hold on to their U.S. dollar long positions and not
just drop the market, and get in and out and make a quick buck,"
he said.
    The Canadian dollar ended the North American
session at C$1.0800 to the greenback, or 92.59 U.S. cents,
stronger than Friday's close of C$1.0814 or 92.47 U.S. cents.
    After last week's relatively quiet domestic calendar,
investors will get a look at more economic data in the coming
days, including Canadian economic growth for May and producer
prices for June. 
    But the bigger focal point this week will be the United
States, where markets will get the first reading of
second-quarter growth figures and the July unemployment report,
as well as a Federal Reserve meeting. 
    The U.S. gross domestic product report could have the
biggest impact on markets, with risk to the downside if the
economy doesn't achieve the 3 percent growth rate economists
forecast, said Scott Smith, senior market analyst at Cambridge
Mercantile Group in Calgary. 
    While that could hurt the U.S. dollar, it could be a benefit
to the loonie. "If we do see something come in lower than
expected, I don't think markets are necessarily prepared for
that," Smith said.
    Canadian government bond prices were mixed, with the
two-year off 1 Canadian cent to yield 1.088 percent.
The benchmark 10-year added 2 Canadian cents to
yield 2.117 percent, a more than one-year low.

 (Editing by Peter Galloway)