* Trump's low-rate comments send yields to near five-month
* Geopolitical concerns underpin safe-haven demand for bonds
* U.S. yield curve moves to flattest level since November
* Benchmark yield on track steepest weekly drop since July
By Richard Leong
NEW YORK, April 13 U.S. Treasury yields fell on
Thursday, with benchmark yields hitting near five-month lows as
U.S. President Donald Trump's favorable view of low interest
rates intensified this week's bond market rally that was
underpinned by geopolitical worries.
Trump's rate view appeared in a Wall Street Journal
interview published late Wednesday, in which he also said he
likes and respects Federal Reserve Chair Janet Yellen, whose
term ends in 2018, although he was critical of her during his
"There has been this flight-to-safety for bonds with a lot
of geopolitical risks. Then you have comments from Trump in
favor of low rates and now he might keep Yellen," said Larry
Milstein, head of U.S. government and agency trading at R.W.
Pressprich & Co. in New York.
The yield on 10-year Treasury notes was on track
for its biggest weekly decline since July 2016, while the gap
between two-year and 10-year yields contracted to its tightest
since Nov. 9 after Trump's presidential win.
Trump's comments on interest rates and Yellen, as well as
his comment that the dollar was too strong, came as his
administration sought to deal with its involvement in the civil
war in Syria and with North Korea's nuclear weapons program.
Investors have also been worried about the tight French
presidential election on April 23. Opinion polls raised concerns
that hard-left candidate Jean-Luc Melenchon and far-right leader
Marine Le Pen, who are both anti-EU, could end up in a runoff
Benchmark 10-year Treasury yields were down over
3 basis points at 2.261 percent after hitting 2.218 percent
earlier Thursday, which was the lowest since Nov. 17.
The 30-year bond yield was down over 2 basis
points at 2.907 percent after falling to 2.870 percent, a level
last traded on Nov. 10.
The U.S. bond market will shut early at 2 p.m. EDT (1800
GMT) ahead of the market holiday on Good Friday.
April 13 Thursday 9:45AM New York / 1345 GMT
US T BONDS JUN7 153-17/32 0-17/32
10YR TNotes JUN7 125-220/256 0-100/25
Price Current Net
Yield % Change
Three-month bills 0.8 0.8127 -0.002
Six-month bills 0.9125 0.9294 -0.013
Two-year note 100-16/256 1.2174 -0.021
Three-year note 100-54/256 1.4278 -0.035
Five-year note 100-104/256 1.7888 -0.041
Seven-year note 100-92/256 2.0692 -0.044
10-year note 99-228/256 2.2623 -0.034
30-year bond 101-216/256 2.907 -0.023
DOLLAR SWAP SPREADS
Last (bps) Net
U.S. 2-year dollar swap 32.50 0.50
U.S. 3-year dollar swap 25.75 0.75
U.S. 5-year dollar swap 10.75 0.25
U.S. 10-year dollar swap -3.50 0.25
U.S. 30-year dollar swap -40.50 0.00
(Reporting by Richard Leong; Editing by Chizu Nomiyama)