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NEW YORK, May 1 (Reuters) - U.S. Treasury yields trimmed gains on Monday after data showed U.S. consumer spending was flat and inflation fell in March, in line with soft economic growth in the first quarter.
Spending in the first three months of the year was limited by a mild winter, which reduced demand for heating and utilities. Economists had predicted a 0.2 percent rise in consumer spending.
Data also showed that inflation, as measured by the core personal consumption expenditures (PCE) index, was subdued in March, sliding 0.1 percent.
In early trading, benchmark 10-year U.S. Treasury notes were down 1/32 in price to yield 2.283 percent, lower than the 2.291 yield before the data's release.
U.S. 30-year bond prices slipped 3/32, yielding 2.956 percent, down from 2.963 percent before the report. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)