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Treasury yields and US stock futures both rose on Friday after data showed that the US economy expanded at its slowest pace since 2014 during the first quarter.

Yield on the 10-year note climbed as much as 4.7 basis points (0.047 percentage points) higher to 2.28 per cent while the more policy sensitive 2-year note yield rose 2.9 bps to 1.28 per cent.

Elsewhere, futures for the Dow Jones Industrial Average, which were flat before the GDP report, traded 0.1 per cent higher. The dollar, as measured by the DXY index, trimmed its losses from 0.2 per cent to 0.1 per cent.

The relatively bullish moves suggest that while the 0.7 per cent rate of growth undershot consensus estimates of 1 per cent growth, it was not as bad as some had feared. Of the 70 economists surveyed by Bloomberg, 15 were expecting growth to come in at 0.7 per cent or lower.

Ahead of the data release, the Atlanta Federal Reserve had lowered its forecast for US first quarter economic growth to 0.2 per cent.

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