CANADA FX DEBT-C$ hits one-month low as GDP data boosts greenback

    * Canadian dollar falls 0.2% against the greenback
    * Loonie hits a one-month low
    * Oil prices gain0.3%
    * Bond prices mixed across a flatter yield curve

    By Levent Uslu
    TORONTO, July 26 (Reuters) - The Canadian dollar weakened to
a one-month low against its U.S. counterpart on Friday after
data showing stronger-than-expected growth in the U.S. economy
that was supportive of the greenback.
    The U.S. dollar        strengthened against a basket of
major currencies after the data, which could support the view
that an expected interest rate cut by the Federal Reserve at the
end of the month would not be the start of major easing by the
central bank.                 
    At 9:50 a.m. (1350 GMT), the Canadian dollar          was
trading 0.2% lower at 1.3186 to the greenback, or 75.84 U.S.
cents.The currency tocuhed its lowest intraday level since June
26 at 1.3194.
    The price of oil, one of Canada's major exports, rose and
was on track for a weekly increase as geopolitical tensions over
Iran remained unresolved, although flagging prospects for global
economic growth amid the U.S.-China trade war capped gains. U.S.
crude oil futures        were up 0.2% to $56.15 a barrel.
    Canadian government bond prices were mixed across a flatter
yield curve, with the two-year            down 0.5 Canadian cent
to yield 1.453% and the 10-year             rising 9 Canadian
cents to yield 1.457%.
    The gap between Canada's 10-year yield and its U.S.
equivalent widened by 2.4 basis points to a spread of 63.1 basis
points in favor of the U.S. bond, the biggest gap since June 18.

 (Reporting by Levent Uslu
Editing by Bill Trott)