treasury yields jumped by the most in a month on thursday after a raft of us data prompted traders to price in greater chances of interestrate hikes by the federal reserve next week and in junethursdays moves left the 2 10 and 30year yields not far from where they ended the new york session on monday as they rebounded from tuesdays steep declines in rates data released on thursday showed that us firstquarter gdp advanced at a lackluster 11 pace amid declining business investment that was less than the 2 increase that wall street analysts had forecast for gross domestic product the official scorecard for the economynonetheless consumer spending the main engine of us growth drove the economy forward during that period helping the us stave off a recession spending jumped at a 37 clip the biggest increase in almost two years buried inside thursdays gdp report were concerning signs about price gains the price index for gross domestic purchases increased 38 in the first quarter up from 36 in the fourth quarter meanwhile the personalconsumption expenditures price index grew at a 42 pace during the quarter excluding food and energy prices the pce index rose 49 in a separate report weekly initial joblessbenefit claims fell sharply by 16000 to 230000 for the week that ended april 22  a decline that almost wiped away the last two weekly increases and pending home sales fell 52 in march the first drop since last november after the us data releases fedfunds futures traders swung back to pricing in a more than 80 chance of a quarterpoint rate increase next wednesday by the us central bank the likelihood of a may rate hike by the federal reserve was seen at 89 up from 72 a day ago that would lift the fedfunds rate target to between 5 and 525 according to the cme fedwatch tool traders also factored in a 24 chance of another quarterpercentagepoint hike in june and pulled back on the extent of rate cuts they foresee through december late wednesday the republicancontrolled house of representatives approved a debtceiling bill in a 217215 vote the opening salvo in a process thats being closely watched by traders worried about a possible us defaulton friday pce figures for the month of march will be released what analysts are saying the disappointing 11 annualized rise in firstquarter gdp indicates that the economy had less forward momentum at the start of this year than previously thought we continue to expect the drag from higher interest rates and tightening credit conditions to push the economy into a mild recession soon said andrew hunter deputy chief us economist for capital economics overall the data confirm the message from other indicators that while economic growth is slowing it isnt yet collapsing hunter wrote in a note nevertheless with most leading indicators of recession still flashing red and the drag from tighter credit conditions still to feed through we expect a more marked weakening soon this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal