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TREASURIES-U.S. yields soar, curve steepens sharply after Pfizer's vaccine news

    * U.S. 10-year, 30-year yields hit highest since March
    * U.S. 2-year, 20-year yields touch highest since June
    * U.S. yield curve steeper since February 2018
    * U.S. TIPS yield hits highest since July

 (Adds new comment, bullets, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Nov 9 (Reuters) - U.S. Treasury yields jumped on
Monday as news of a successful vaccine from Pfizer Inc currently
in its late stage fueled optimism that the world's largest
economy would emerge from a pandemic-induced recession.
    The benchmark 10-year yield rose to its highest since March
and was on track for its biggest one-day jump since March. 
    The U.S. yield curve, an indication of risk appetite, hit
its steepest level since February 2018, with the spread between
2-year and 10-year notes rising to 77.8 basis points
.    
    Pfizer said on Monday its experimental vaccine was
more than 90% effective in preventing COVID-19, based on initial
data from a large study. 
    The news, potentially a major victory in the fight against a
pandemic that has killed over 1 million people, roiled the
world's economy and upended daily life, sparked a sell-off in
safe-haven bond markets in the United States and Europe. 
    "The combination of the vaccine news and 'clarity' on the
political front has cleared the way for a meaningful sell-off in
Treasuries and outperformance in risk assets," said Ian Lyngen,
head of U.S. rates strategy, at BMO Capital in New York, in a
research note.
    "Our read is that it's far more about the progress toward a
vaccine and an eventual end to the pandemic than it is Biden's
victory," he added.
    Two days after clinching victory over Republican President
Donald Trump, Democrat Biden is set to give remarks in
Wilmington, Delaware, about his plans to address the pandemic
that has killed more than 237,000 Americans and to rebuild the
economy.
    In late morning trading, U.S. 10-year Treasury yields were
last up at 0.954%, from 0.82% late on Friday. It hit
0.975%, the highest since March. 
    U.S. 30-year yields also touched their highest level since
March of 1.767% and last traded up at 1.745%, from
Friday's 1.598%.
    On the front end of the curve, U.S. two-year yields rose to
their strongest level since June of 0.189% and last stood at
0.18%, up from 0.155%.
    The yield on U.S. 10-year Treasury Inflation Protected
Securities hit -0.743, the highest since July. It
was last at -0.765%, compared with -0.836% last Friday.
    U.S. inflation break-evens, the bond market's gauge of
investors' inflation outlook, also rose. The yield spread
between 10-year TIPS and 10-year Treasury notes was at 1.72%,
the highest level since late October. 
    
      November 9 Monday 11:20AM New York / 1620 GMT
                               Price                  
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                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.095        0.0963    0.002
 Six-month bills               0.1          0.1014    0.000
 Two-year note                 99-227/256   0.1826    0.028
 Three-year note               99-166/256   0.2456    0.043
 Five-year note                99-10/256    0.4456    0.083
 Seven-year note               98-152/256   0.707     0.111
 10-year note                  96-244/256   0.9525    0.132
 20-year bond                  93-120/256   1.5084    0.141
 30-year bond                  91-136/256   1.7408    0.143
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         7.50        -0.75    
 spread                                               
 U.S. 3-year dollar swap         6.50        -1.00    
 spread                                               
 U.S. 5-year dollar swap         5.25        -0.75    
 spread                                               
 U.S. 10-year dollar swap        1.25        -0.50    
 spread                                               
 U.S. 30-year dollar swap      -33.50        -0.50    
 spread (Reporting by Gertrude Chavez-Dreyfuss; Editing by Dan Grebler
and Nick Zieminski)
  

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