NEW YORK, April 28 U.S. Treasury debt yields
across the curve rose to session highs on Friday after data
showed the U.S. economy in the first quarter grew at its slowest
pace in three years, but indicated a more buoyant inflation and
U.S. gross domestic product grew at a 0.7 percent annual
rate, the Commerce Department said, the weakest performance
since the first quarter of 2014.
But there were positive elements. For instance, the core
inflation measure, the PCE index, was 2.0 percent, compared with
1.3 percent in the fourth quarter, suggesting the Fed remains on
track to raise interest rates this year.
Also, first-quarter employment costs rose to 0.8 percent,
higher than market expectations, an indication of accelerating
In morning trading, benchmark 10-year notes were
down 9/32 in price to yield 2.328 percent. Yields hit session
highs of 2.338 percent.
(Reporting by Gertrude Chavez-Dreyfuss)