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.