April 29, 2020 / 2:39 PM / a month ago

TREASURIES-Yields down ahead of Fed meeting wrap-up

    CHICAGO, April 29 - U.S. Treasury yields were lower on
Wednesday as the market awaited the end of the Federal Reserve's
two-day meeting and the central bank's latest take on rescuing
the sinking economy.
    The benchmark 10-year yield was last down 1.5
basis points at 0.5954%.
    The U.S. Commerce Department reported a
steeper-than-expected economic contraction in the first quarter
as shutdowns due to coronavirus outbreak began. The advance
first quarter gross domestic product fell at a 4.8% annual rate,
exceeding economists' forecasts of 4.0%.
    "Ultimately, the market knew this was bad, didn't know the
exact number, but knew that it was a significant negative
leading to what will be a more significant negative," said
Justin Hoogendoorn, head of the fixed income strategic analytics
at Piper Sandler in Chicago.
    Yields had ticked a little higher after Gilead Sciences Inc
 reported that its experimental antiviral drug
remdesivir helped improved symptoms in COVID-19 patients who
were administered the medication early.
     Later on Wednesday, the Fed is expected to reiterate its
promise to do whatever it takes to support the U.S. economy. It
could also signal how long it plans to leave interest rates near
zero.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was last down 1.4
basis points at 0.1955%.
    
    April 29 Wednesday 9:22AM New York / 1422 GMT
                                                      
                                                      
                                                      
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.105        0.1068    0.001
 Six-month bills               0.1275       0.1294    -0.011
 Two-year note                 99-220/256   0.1955    -0.014
 Three-year note               100-4/256    0.2447    -0.021
 Five-year note                100-34/256   0.3482    -0.021
 Seven-year note               100          0.5       -0.022
 10-year note                  108-152/256  0.5954    -0.015
 30-year bond                  120-68/256   1.1901    -0.017
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap        12.50        -1.50    
 spread                                               
 U.S. 3-year dollar swap         7.50        -0.75    
 spread                                               
 U.S. 5-year dollar swap         4.75        -0.75    
 spread                                               
 U.S. 10-year dollar swap        0.75         0.25    
 spread                                               
 U.S. 30-year dollar swap      -43.25         0.75    
 spread                                               
 

 (By Karen Pierog in Chicago)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below