U.S. government debt yields were lower on Friday morning as U.S. gross domestic product for the second quarter missed economists' expectations.
The U.S. economy grew far less than expected in the second quarter with inventories falling for the first time since 2011, but a surge in consumer spending pointed to underlying strength.
Gross domestic product increased at a 1.2 percent annual rate, the Commerce Department said on Friday. The economy was previously reported to have grown at a 1.1 percent pace in the first quarter. Economists polled by Reuters had forecast GDP growth rising at a 2.6 percent rate in the last quarter.
The yield on the benchmark 10-year Treasury note sat slightly lower around 1.4626 percent, while the yield on the 30-year Treasury bond was also lower at 2.1955 percent.
Oil prices fell to their lowest levels since April on Friday, with on Brent track for its biggest monthly loss since December 2015.
Crude futures pared losses after U.S. preliminary second-quarter GDP. Brent crude oil futures were last down 0.23 percent at $43.45, after toughing their lowest level since April earlier. U.S. West Texas Intermediate (WTI) crude was last up 0.88 percent from the previous close to $41.49 a barrel, after slipping below $41 for the first time since April. Both benchmarks were poised for a monthly loss of more than 15 percent.
The U.S. dollar index fell following the report.
On Friday, the Bank of Japan (BOJ) pledged to increase purchases of exchange-traded funds (ETF) but kept interest rates steady at the close of its two-day meeting on Friday, confounding market expectations of hefty stimulus.
Reuters contributed to this report