text: Canadian bonds open softer , spreads to U.S. shrink . TORONTO 1996-08-30 Canadian bonds opened softer on Friday , pulled lower by a sinking U.S. market , but outperformed U.S. bonds on positive Canadian economic data , analysts said . " I think this morning 's Canadian numbers were very supportive of narrower spreads , particularly the current account number , " said Jim Webber , director of fixed-income research with TD Securities Inc . Canada 's 8.0 percent bond due 2023 fell C$ 0.45 to C$ 101.15 to yield 7.894 percent . The U.S. 30-year benchmark fell 30/32 to yield 7.12 percent . The spread between benchmark bonds narrowed 77 basis points from 81 basis points at the close of trading on Wednesday . Statistics Canada on Friday reported Canada 's current account moved to a higher-than-expected C$ 1.15 billion second quarter surplus from a C$ 1.62 billion deficit in the first quarter . It was the first surplus since the fourth quarter of 1984 . The agency also reported Canada 's real gross domestic product rose a weaker-than-expected 0.3 percent in the second quarter or 1.3 percent at an annualized rate . While the data provided support for Canadian bonds , both Canadian and U.S. markets weakened after the release of strong U.S. economic data , including a report showing the Chicago Purchasing Managers August index rose to 60 from 51.2 in July . " The purchasing managers ' number is extremely , extremely strong , " said Webber . In other news , the Toronto Bond Traders ' Association said it is recommending that dealings in the Canadian bond market end early at 1400 EDT / 1800 GMT on Friday . The Canadian market typically closes early on holiday weekends and Canadian financial markets will be closed on Monday for Labour Day . In other prices , the 7.0 percent of 2006 fell C$ 0.28 to C$ 96.89 to yield 7.437 percent . The U.S. 10-year benchmark fell 21/32 to yield 6.95 percent . The spread between the two bonds narrowed to 49 basis points from 54 basis points at the close of trading on Thursday . The three-month cash bill traded at 4.04 percent against the U.S. three-month bill at 5.26 percent . -- Jeffrey Hodgson ( 416 ) 941-8105 , e-mail : jeffrey.hodgson@reuters.com