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TREASURIES-U.S. yields jump on abrupt surge in selling
January 13, 2017 / 3:57 PM / a year ago

TREASURIES-U.S. yields jump on abrupt surge in selling

By Richard Leong
    NEW YORK, Jan 13 (Reuters) - 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)

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