April 25 (Reuters) - U.S. Treasury yields rose and 10-year yields hit a more than five-month high after data on Thursday showed that a measure of inflation rose more than expected in the first quarter, even as growth was weaker than previously thought.
Gross domestic product increased at a 1.6% annualized rate last quarter, below economists’ expectations for a 2.4% gain. Core PCE rose by 3.7%, above expectations for a 3.4% increase.
Benchmark 10-year Treasury note yields reached 4.70%, the highest since Nov. 2. Two-year yields gained four basis points on the day to 4.983%. Fed funds futures traders are pricing in 37 basis points of easing this year, down from 43 basis points late on Wednesday, with the first cut fully priced in for November. (Reporting By Karen Brettell; editing by Barbara Lewis)
