* Canadian dollar at C$1.0847 or 92.19 U.S. cents
* Bond prices up across the maturity curve
By Leah Schnurr
TORONTO, May 30 The Canadian dollar weakened
against the greenback on Friday after data showed the pace of
domestic economic growth cooled more than expected in the first
Gross domestic product expanded by an annualized 1.2 percent
in the first three months of the year, shy of expectations for
The Canadian dollar has gained modestly through May, though
it has largely stayed within a slim trading range as investors
have weighed generally improving data against a neutral stance
from the Bank of Canada.
For the markets, Friday's GDP report will be viewed through
the lens of what it means for the Bank of Canada's meeting next
week, which is likely to see the central bank stick to its
course, said Greg Moore, senior currency strategist at Royal
Bank of Canada in Toronto.
"Given what we've seen in the Canadian dollar over the past
few weeks in terms of strengthening, it suggests the market was
turning a little less dovish on the Canadian dollar and the
Canadian outlook," said Moore.
"This type of report suggest the Bank of Canada won't shift
their tone," he added.
The Canadian dollar was at C$1.0847 to the
greenback, or 92.19 U.S. cents, weaker than Thursday's close of
C$1.0836, or 92.28 U.S. cents.
Canadian government bond yields edged lower though the
benchmark 10-year yield stayed above the 11-month low it hit
earlier this week. The 10-year was up 13 Canadian
cents to yield 2.555 percent, while the two-year was
up 1 Canadian cent to yield 1.050 percent.
(Editing by W Simon)