* Traders anticipate upbeat U.S. data
* Traders discount separatist conflict in Ukraine
* Market awaits $96 bln in Treasury supply
(Updates prices, adds new comments)
By Sam Forgione
NEW YORK, April 21 U.S. Treasuries yields were
little changed on Monday after anticipation of another round of
strong U.S. economic data limited safe-haven bids, and as
traders discounted conflict in Ukraine and emphasized efforts to
ease tensions in the country.
While conflict in Ukraine lingered on Monday, traders
concentrated on last Thursday's upbeat U.S. economic data
showing jobless claims remained low and factory activity was
better than expected, and an international agreement struck in
Geneva to lower tension in Ukraine.
"We are getting a significant snapback as the weather warms
up," said Wilmer Stith, fixed income portfolio manager for
Wilmington Trust in Baltimore, Maryland, on the recent positive
U.S. economic data.
Traders expected figures this week on U.S. durable goods
orders, new and existing home sales, weekly jobless claims and
consumer sentiment could come in positive, which would support
the view that U.S. economic activity has improved after a
brutally cold winter.
Those expectations limited safe-haven bids for U.S.
Treasuries. Regarding Ukraine, traders focused on a joint
statement from Russia, Ukraine, the European Union and the
United States last Thursday to ease tensions in the region.
"Since the Geneva discussions, less brinkmanship has been
brought to the picture," said Stith of Wilmington Trust. "It
takes away some of the knee-jerk flight-to-quality bid."
Traders focused on those efforts despite continued conflict
in Ukraine on Monday, when pro-Moscow separatist gunmen showed
no sign of surrendering government buildings they have seized.
Washington says it will hold Moscow responsible and impose
new economic sanctions if the separatists do not clear out of
government buildings they have occupied across swathes of
eastern Ukraine over the past two weeks.
Traders also said that moves were limited after the Good
Friday market holiday last week and as financial markets in
European and many Latin American countries remained closed for
the Easter holiday.
"The market is in sort of a wait-and-see attitude," said
Justin Hoogendoorn, fixed income strategist at BMO Capital
Markets in Chicago. "Traders are asking whether the U.S. economy
will really pick up."
Traders also awaited $96 billion in new coupon-bearing
supply this week. The U.S. government will sell $32 billion in
two-year notes on Tuesday, $35 billion in five-year notes on
Wednesday and $29 billion in seven-year notes on Thursday.
Traders said anticipation of the $96 billion in incoming
supply had little effect on Treasuries prices on Monday.
"It's an amount that has shown to be easily digestible by
the market," said Stith of Wilmington Trust.
Benchmark 10-year notes were last down 1/32 in
price to yield 2.715 percent, from 2.71 percent late Thursday.
The yield on the 30-year Treasury bond was last at
3.52 percent, from 3.51 percent late Thursday.
The yield on the 5-year Treasury note was last at
1.72 percent, also roughly unchanged from 1.73 percent last
The Federal Reserve bought $3.65 billion of Treasuries
maturing between Jan.-Dec. 2019 on Monday as part of its ongoing
asset purchases, which had little impact on Treasuries prices.
On Wall Street, all three major stock indexes advanced
modestly as investors awaited key earnings releases.
(Reporting by Sam Forgione; Editing by Meredith Mazzilli and