June 29, 2020 / 2:44 PM / 14 days ago

TREASURIES-Yields steady as risk appetite improves

    CHICAGO, June 29 (Reuters) - U.S. Treasury yields hovered
around the unchanged mark on Monday as stocks opened higher
following last week's selloff amid a surge in coronavirus cases.
    The benchmark 10-year yield was flat at 0.6381%.
    The global death toll from COVID-19 surpassed half a million
people on Sunday, according to a Reuters tally, with the United
States accounting for about one-quarter of all the deaths.
  
    Bill Merz, head of fixed income research at U.S. Bank Wealth
Management in Minneapolis, said he expected small changes for
long-term yields in line with risk preferences, noting that
Treasuries may be "one of the least interesting markets for the
rest of the year" due to the Federal Reserve's influence on the
short end of the curve. 
    "There's not many places to go in terms of yields in the
front end of the curve," he said. "They're going to be
relatively close to where they are now until the Fed decides
otherwise and that has a pretty powerful influence at the longer
end of the curve as well." 
    Investors this week will focus on employment, consumer
confidence and manufacturing data for June for signs if the U.S.
economy will continue to rebound after indications of a pickup
in May.
    A closely watched part of the U.S. Treasury yield curve
measuring the gap between yields on two- and 10-year Treasury
notes, which is viewed as an indicator of
economic expectations, was at 47.80 basis points, less than a
basis point higher than at Friday's close.
   June 29 Monday 9:26 a.m. New York / 1426 GMT
                                                      
                                                      
                                                      
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.14         0.142     -0.003
 Six-month bills               0.1675       0.17      0.000
 Two-year note                 99-238/256   0.1602    -0.008
 Three-year note               100-56/256   0.1758    -0.008
 Five-year note                99-212/256   0.2846    -0.012
 Seven-year note               100-40/256   0.4773    -0.007
 10-year note                  99-224/256   0.6381    0.000
 20-year bond                  99-152/256   1.1479    0.006
 30-year bond                  96-212/256   1.3799    0.008
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         6.75        -0.25    
 spread                                               
 U.S. 3-year dollar swap         5.75         0.00    
 spread                                               
 U.S. 5-year dollar swap         3.75         0.00    
 spread                                               
 U.S. 10-year dollar swap       -2.25        -0.75    
 spread                                               
 U.S. 30-year dollar swap      -49.75        -1.00    
 spread                                               
                                                      
 


 (By Karen Pierog in Chicago)
  
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