Bonds News

TREASURIES-Yields rise on positive COVID-19 vaccine news

 (Adds upcoming Powell appearance; updates prices)
    By Karen Brettell
    NEW YORK, Nov 16 (Reuters) - U.S. Treasury yields rose on
Monday and the yield curve steepened as news of another
promising coronavirus vaccine boosted optimism that the economy
may be closer to returning to normal, but that was tempered by a
likely slow rollout.
    Moderna Inc's experimental vaccine was 94.5%
effective in preventing COVID-19 based on interim data from a
late-stage trial, the company said on Monday, becoming the
second U.S. drugmaker in as many weeks to report results that
far exceeded expectations.
    "It's great vaccine news but it's still not being
distributed to the general public," said Justin Lederer, an
interest rate strategist at Cantor Fitzgerald in New York. 
"Ultimately, I do think yields will go higher long-term, but
there's still a massive recovery that needs to take place and
we're not anywhere close to out of this."
    Benchmark 10-year yields rose 1.5 basis points
to 0.908%. The yields reached an eight-month high of 0.975% last
Monday, ahead of new supply of three-year, 10-year and 30-year
debt as part of the Treasury's quarterly refunding.
    The yield curve between two-year and 10-year notes
 steepened one basis point to 73 basis points.
    The Federal Reserve is expected to shift more of its bond
purchases to longer-dated debt if it views yields as rising too
far relative to U.S. economic strength.
    Fed Chair Jerome Powell will speak on Tuesday at a Bay Area
Council Business Hall of Fame awards event.
    Data on Monday showed that manufacturing growth in New York
slowed in November, missing economists' expectations.

    The next major U.S. economic focus is October retail sales
data due out on Tuesday.
    The Treasury Department will sell $27 billion in 20-year
bonds on Wednesday and $12 billion in 10-year Treasury
Inflation-Protected Securities (TIPS) on Thursday.
  November 16 Monday 3:00PM New York / 2000 GMT
 US T BONDS DEC0               171-28/32    -0-10/32  
 10YR TNotes DEC0              138-8/256    -0-20/25  
                               Price        Current   Net
                                            Yield %   Change
 Three-month bills             0.0825       0.0837    -0.007
 Six-month bills               0.095        0.0964    0.000
 Two-year note                 99-229/256   0.1791    0.000
 Three-year note               100-12/256   0.2343    0.000
 Five-year note                99-58/256    0.4079    0.005
 Seven-year note               98-236/256   0.6589    0.009
 10-year note                  99-176/256   0.9078    0.015
 20-year bond                  94-196/256   1.4302    0.012
 30-year bond                  99-40/256    1.6608    0.013
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
 U.S. 2-year dollar swap         8.25         0.00    
 U.S. 3-year dollar swap         7.75         0.50    
 U.S. 5-year dollar swap         6.25         0.50    
 U.S. 10-year dollar swap       -0.25         0.50    
 U.S. 30-year dollar swap      -32.75         1.00    
 spread (Reporting by Karen Brettell; editing by Jonathan Oatis and
Richard Chang)