* Canadian dollar at C$1.0839 or 92.26 U.S. cents
* Bond prices lower across the maturity curve
By Leah Schnurr
TORONTO, Aug 29 The Canadian dollar firmed
against the greenback on Friday, making a fourth day of gains in
a row after data showed the domestic economy grew at a faster
pace than expected in the second quarter.
The loonie is up about 1 percent for the week, partly fueled
by a sharp gain on Wednesday and putting it on track for its
best week since late March.
A number of factors have driven the loonie higher, including
fund flow speculation stemming from Burger King's plans
to buy Tim Hortons and investor repositioning at the
end of the month.
The market had also been readying for the possibility that
Friday's economic data could come in stronger than expected and
the gross domestic product report delivered, coming in with a
3.1 percent annualized rate of growth.
That was better than forecasts for 2.7 percent and sent the
loonie to a session high at C$1.0829.
"As a stand-alone, this is a relatively strong report and it
should support the recent gains we've seen in the Canadian
dollar," said Doug Porter, chief economist at BMO Capital
Markets in Toronto.
The Canadian dollar was at C$1.0839 to the
greenback, or 92.26 U.S. cents, stronger than Thursday's close
of C$1.0847, or 92.19 U.S. cents.
Trading volumes could thin through the day heading into a
long weekend with Canadian and U.S. markets closed on Monday for
Focus next week will be on the Bank of Canada's monetary
policy statement to be delivered on Wednesday. The central bank
is expected to leave rates at 1 percent until the third quarter
of next year and is seen sticking to its cautious tone next
Canadian government bond yields rose, with the yield on the
benchmark 10-year bouncing off Thursday's nearly
The two-year was down 1-1/2 Canadian cents in
price to yield 1.109 percent, and the 10-year was down 10
Canadian cents to yield 2.010 percent.
(Additional reporting by Andrea Hopkins; Editing by Meredith