April 27, 2012 / 1:10 PM / in 5 years

TREASURIES-Prices rise on slower-than-expected US growth

2 Min Read

NEW YORK, April 27 (Reuters) - U.S. Treasury debt prices
rose Friday after slower-than-expected economic growth in the
first quarter stoked safe-haven buying of U.S. government debt.	
    Gross domestic product expanded at a 2.2 percent annual
rate, the Commerce Department said on Friday in its advance
estimate, moderating from the fourth quarter's 3 percent rate.
While that was below economists' expectations for a 2.5 percent
pace, a surge in consumer spending took some of the sting from
the report. 	
    "Of course this is a first release and subject to revisions
but we'd chalk this up to consistent with some of the softer
data and worrisome gain to inventories relative to softer
demand," said David Ader, head of government bond strategy at
CRT Capital Group in Stamford, Connecticut.	
    Benchmark 10-year notes were trading 3/32 higher
in price to yield 1.94 percent, while 30-year bonds 
were 9/32 higher to yield 3.11 percent.	
    Treasuries continued to be supported by safe-haven buying
over worries about Europe's debt crisis.	
    Standard & Poor's on Thursday cut Spain's credit rating by
two notches, adding fuel to the fire at a time when investors
are already concerned about Spain's inability to grow out of its
debt and as unemployment hit its highest level in two decades.

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