Treasuries rose on Thursday after a U.S. government showed the economy grew at a slower rate in the fourth quarter of 2007 than forecast and jobless claims rose more than expected.

The Commerce Department reported that economy, as measured by the Gross Domestic Product (GDP), rose at 0.6 percent in the fourth quarter.

The figures were weaker than predictions of a 0.7 rate by Thomson/IFR. The Federal Reserve predicts slow growth for the first half of the year and increasing growth in the latter half.

Meanwhile, the U.S. Labor Department said today that people applying for jobless benefits grew last week rose by 19,000 to 373,000.

The two year note rose 11/32 to yield 1.852 at 4:02 p.m. in New York. The ten year note was up 1 11/32 to yield 3.685

Notes continued their rise earlier today when the U.S. Treasury auctioned off $16 billion in 5-year treasury notes which were up 30/32 to yield 2.755 percent. the bid-to-cover ratio, which indicates demand, was 2.29.