* Canadian dollar at C$1.3653, or 73.24 U.S. cents
* Bond prices slightly lower across the yield curve
By Fergal Smith
TORONTO, April 28 The Canadian dollar weakened
against its U.S. counterpart on Friday, retaining this week's
defensive bias as domestic data showed the economy stalled in
February, offsetting a rebound in oil prices.
Canadian gross domestic product was flat in February,
matching the forecast by analysts in a Reuters poll, after
robust growth in January.
"It is a soft month in an otherwise solid quarter," said
Derek Holt, head of capital markets economics at Scotiabank.
Oil prices rose after dropping to a one-month low the
previous day, prompting investors to buy at cheaper levels ahead
of a May Organization of the Petroleum Exporting Countries
meeting at which producers could extend output cuts.
At 9:01 a.m. ET (1301 GMT), the Canadian dollar was
trading at C$1.3653 to the greenback, or 73.24 U.S. cents,
weaker than Thursday's close of C$1.3624, or 73.40 U.S. cents.
The currency traded in a range of C$1.3625 to C$1.3666.
On Thursday, the loonie touched a fresh 14-month low at
C$1.3670. It is on course to fall 1.1 percent this week,
pressured by recent weakening in oil prices and a more uncertain
outlook for the North American Free Trade Agreement.
Canadian government bond prices were slightly lower across
the yield curve in sympathy with U.S. Treasuries. The two-year
dipped 1.5 Canadian cents to yield 0.742 percent and
the 10-year declined 5.2 Canadian cents to yield
On Thursday, the 10-year yield touched a three-week high at
(Reporting by Fergal Smith; Editing by Nick Zieminski)