* U.S. Q4 GDP growth 2.1 percent in final estimate
* Yield rise seen temporary
(Adds comment, details, byline, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, March 30 U.S. Treasury debt yields
drifted higher on Thursday after data showed the final U.S.
gross domestic product number for the fourth quarter was revised
higher, reflecting a fairly steady growth path for the world's
Yields though have trended lower over the last two weeks,
with that of benchmark U.S. 10-year notes declining nearly 30
basis points since hitting a three-month peak on March 14.
Analysts said the slight gain in yields, which move inversely to
prices, could well be temporary.
"We had decent data so we have a bearish tone in the
market," said Stan Sun, interest rates strategist at Nomura in
New York. "Not to forget that yesterday we had a pretty good
rally and so we're just kind of retracing from there."
The final U.S. GDP growth number was 2.1 percent in the
fourth quarter, higher than the second estimate of 1.9 percent
growth and exceeding market forecasts for a 2.0 percent rise.
The fourth quarter number, however, was lower than that of the
third when GDP rose 3.5 percent.
"The trend in growth has remained close to 2 percent, which
is weak by past standards, but strong enough in the current
cycle to bring down the unemployment rate," said Jim O'Sullivan,
chief U.S. economist at High Frequency Economics in Valhalla,
In mid-morning trading, benchmark 10-year notes
were down 2/32 in price to yield 2.394 percent,
compared with 2.387 percent late on Wednesday.
U.S. 30-year bond prices fell 11/32, yielding 3.011 percent
US30-YT=RR, up from Wednesday's 2.994 percent.
On the front end of the curve, U.S. two-year note yields
were at 1.277 percent, down slightly from 1.278
percent on Wednesday.
Prior to the release of the data, Treasury prices had a
modestly positive tone, in line with gains in European bonds as
the European Central Bank was keen to reassure investors that
its easy monetary policy is far from ending.
Treasuries have been bid the last two weeks after the
Federal Reserve at its last policy meeting stuck to its forecast
for a hiking pace of three interest rate increases this year.
More recently, growing doubts about the Trump
administration's ability to get anything done to bolster the
economy have also pushed Treasury prices higher.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrea