By Richard Leong
NEW YORK, Jan 13 U.S. Treasury yields jumped
Friday on a surge in selling, wiping out much of the week's
gains tied to traders scaling back bond bets on potentially
higher inflation and federal borrowing under the impending
administration of President-elect Donald Trump.
The abrupt spike in yields came soon after Friday's U.S.
data on retail sales and producer prices in December, which was
largely within analyst forecasts.
Analysts and traders blamed the market selloff on
computerized sell orders generated in response to buying when
the data were released.
The rise in yields also stemmed from traders locking in
recent gains ahead of the three-day U.S. Martin Luther King Jr.
weekend and bond dealers reselling their purchases from a soft
$12 billion 30-year Treasury auction on Thursday.
"The market is flushing lower because there are a lot of bad
longs out there," said Tom di Galoma, managing director at
Seaport Global Holdings in New York. "People also want to go
flat with their positions going into the long weekend."
Benchmark 10-year Treasury yield was up 5 basis
points at 2.409 percent, reducing its weekly decline to 1 basis
On Thursday, the 10-year yield hit 2.307 percent which was
its lowest in six weeks.
January 13 Friday 10:41AM New York / 1541 GMT
US T BONDS MAR7 151-23/32 -0-28/32
10YR TNotes MAR7 124-136/256 -0-92/25
Price Current Net
Yield % Change
Three-month bills 0.515 0.5228 0.005
Six-month bills 0.5975 0.6076 0.013
Two-year note 100-18/256 1.2134 0.032
Three-year note 99-166/256 1.4955 0.040
Five-year note 100-104/256 1.9135 0.045
Seven-year note 100-50/256 2.2195 0.049
10-year note 96-108/256 2.411 0.050
30-year bond 97-128/256 3.0023 0.042
DOLLAR SWAP SPREADS
Last (bps) Net
U.S. 2-year dollar swap 29.00 0.00
U.S. 3-year dollar swap 20.75 0.25
U.S. 5-year dollar swap 4.50 0.25
U.S. 10-year dollar swap -12.25 0.50
U.S. 30-year dollar swap -47.50 0.75
(Reporting by Richard Leong; Editing by Bernadette Baum)