EURO GOVT-Bunds pare gains after U.S. GDP data

LONDON Aug 27 (Reuters) - German Bund futures pared gains after a reading of U.S. GDP data showed growth in the world's largest economy wasn't quite as weak as feared in the second quarter.

At 1240 GMT, September Bund futures FGBLc1 were 20 ticks higher at 134.14, compared with around 134.45 before the data.

Two-year bond yields DE2YT=TWEB were 2.2 basis points higher at 0.639 percent , with 10-year yields DE10YT=TWEB down 0.6 basis points at 2.142 percent.

U.S. second-quarter preliminary GDP was revised to up 1.6 percent, compared with expectations of a revision to 1.4 percent. However, that was still well below the previous estimate of 2.4 percent.

Markets have been tense ahead of a speech by Federal Reserve Chairman Ben Bernanke at the end of the week were dismal economic data heightened fears of a double dip recession.