June 4, 2020 / 1:45 PM / in a month

CORRECTED-TREASURIES-Longer-term yields higher on stimulus efforts, jobless claims

 (Corrects "billion" to "trillion" in third paragraph)
    By Ross Kerber
    June 4 (Reuters) - Longer-term U.S. Treasury yields ticked
up Thursday as European stimulus efforts and a slightly less
grim U.S. jobs report helped support investor confidence.
    The benchmark 10-year yield was up 2.3 basis
points in morning trading at 0.7837%, which also sent a
closely-watched part of the yield curve higher. 
    The European Central Bank said it would raise emergency bond
purchases by 600 billion euros ($674 billion) to 1.35 trillion 
euros, and for six months longer than first planned.
    Meanwhile the number of Americans filing for unemployment
benefits dropped below 2 million last week for the first time
since mid-March, though the figures remained astonishingly
high.
    The reports pushed world markets higher. However
bad the current state of the economy, investors are focused on
forward-looking data for the third quarter of 2020 and whether
businesses will be able to get back on their feet in the face of
the continuing coronavirus pandemic, said Justin Lederer, Cantor
Fitzgerald treasury analyst.
    "We know the data is bad for Q2; we'll see what Q3 brings as
economies reopen," he said.
    Thursday's session came a day after risk-on trading
Wednesday when the 10-year note reached above 0.75% for the
first time since April 15.
    The part of the U.S. Treasury yield curve measuring the gap
between yields on two- and 10-year Treasury notes,
seen as an indicator of economic expectations, was at 59 basis
points, about 3 basis points higher than Wednesday's close and
the highest since March 20.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was down less
than a basis point at 0.194%.
    
      June 4 Thursday 9:23AM New York / 1323 GMT
                               Price                  
 US T BONDS SEP0               174-29/32    -0-19/32  
 10YR TNotes SEP0              138-4/256    -0-44/25  
                                            6         
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.1475       0.1496    -0.005
 Six-month bills               0.1725       0.1755    -0.002
 Two-year note                 99-221/256   0.194     -0.006
 Three-year note               99-162/256   0.2503    0.000
 Five-year note                99-84/256    0.3862    0.009
 Seven-year note               99-64/256    0.6098    0.021
 10-year note                  98-124/256   0.7837    0.023
 30-year bond                  92-88/256    1.5715    0.020
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         7.50         0.50    
 spread                                               
 U.S. 3-year dollar swap         4.25         0.00    
 spread                                               
 U.S. 5-year dollar swap         3.50         0.00    
 spread                                               
 U.S. 10-year dollar swap       -1.25         0.00    
 spread                                               
 U.S. 30-year dollar swap      -48.00         0.50    
 spread                                               
 
 (Reporting by Ross Kerber in Boston; editing by Jonathan Oatis)
  
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