April 30, 2020 / 2:55 PM / a month ago

TREASURIES-Yields steady after jobless claims remain high

    By Karen Pierog
    CHICAGO, April 30 - U.S. Treasury yields were steady on
Thursday, holding onto to their lower momentum, after the latest
bad economic news that millions more Americans were out of work
as a result of the coronavirus outbreak.
    The benchmark 10-year yield was last down 3.5
basis points at 0.592%.
   Initial claims for state unemployment benefits totaled a
seasonally adjusted 3.839 million for the week ended April 25,
according to the U.S. Labor Department. That was down from 4.442
million in the prior week but above the 3.5 million claims
expected by economists polled by Reuters.
    That followed Wednesday's news that the economy in the first
quarter recorded its sharpest contraction since the Great
Recession and the Federal Reserve's repeated vow to do all it
can to stop the bleeding.
    Bill Merz, head of fixed income research at U.S. Bank Wealth
Management in Minneapolis, said with economic fundamentals
unclear, Treasury yields remain in a holding pattern under the
watchful eye of the Fed.
    "There's reasonable odds the Fed could make a concerted
effort to contain long-end rates if they rise too much, too
fast," he said.
    A closely watched 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 40.40 basis points, about 2.6 basis points
lower than Wednesday's close.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was last down
less than a basis point at 0.1916%.
    In repurchase agreement (repo) operations, no bids were
submitted for an overnight operation, according to the New York
Federal Reserve's website. 
    April 30 Thursday 9:21AM New York / 1421 GMT
                                                      
                                                      
                                                      
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.1          0.1017    0.001
 Six-month bills               0.115        0.1167    -0.010
 Two-year note                 99-222/256   0.1916    -0.007
 Three-year note               100-12/256   0.2341    -0.013
 Five-year note                100-46/256   0.3387    -0.023
 Seven-year note               100-12/256   0.4932    -0.033
 10-year note                  108-160/256  0.592     -0.035
 30-year bond                  119-112/256  1.2198    -0.023
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap        12.50         0.00    
 spread                                               
 U.S. 3-year dollar swap         8.75         1.00    
 spread                                               
 U.S. 5-year dollar swap         5.75         1.25    
 spread                                               
 U.S. 10-year dollar swap        1.25         1.00    
 spread                                               
 U.S. 30-year dollar swap      -44.00         0.00    
 spread                                               
 
 (By Karen Pierog in Chicago
Editing by Alistair Bell)
  
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