* Bond prices ahead for fifth session * Volatility seen muted until US jobs data (.) By Michael Connor NEW YORK, June 27 (Reuters) - U.S. Treasuries yields eased on Friday at the end of a week of steady price gains fueled by increasing worries that economic growth in the U.S. may be slower than policymakers believe.
Yields of 10- and 30-year Treasuries hovered near three-week lows touched on Thursday, a day after fixed-income investors were surprised by data showing the U.S. economy contracted more than previously thought in the first quarter.
Buying was also spurred on Thursday by data, including a report showing U.S. consumer spending rose less than expected in May. Signs of slower growth tend to bolster hopes the Federal Reserve will keep ultra-low interest rates in place longer.
"The market is not accepting the higher growth trajectory that the Fed and blue chip economists are telling us we will see in the second half," said Vishal Khanduja, portfolio manager for Calvert Investments. "That's why we aren't seeing much higher yields." Economists, market strategists and portfolio managers were ratcheting down forecasts of U.S. gross domestic product, institutional investors said.
Analysts at TD Securities said Thursday they had cut their GDP annualized growth forecast for the second quarter to 3 percent from 3.6 percent.
"If the print is negative, almost three percent for the first quarter, the bar to print 2 percent total GDP (growth) for the year as a whole is high, and you have to really come out for the last half," Khanduja said.
Yields on 30-year Treasuries fell as low as 3.336 percent, a level last touched on June 2. The bonds last traded to yield 3.3408 percent, up 1/32 in price.
Benchmark 10-year notes were up 2/32 in price to yield 2.5142 percent, after hitting a low of 2.507 percent.
Looking ahead, trading in Treasuries was unlikely to get firm direction until the monthly employment report is released next week, Khanduja said.
The market "is digesting" the most recent data, Khanduj said. "It is looking for a lot more current information that's not backwards looking. So the biggest information we will get will be next week, when the we get the unemployment report." (Editing by Bernadette Baum)