* Intermediate maturities among gainers
* Jobs data soothes inflation worries
* Poll shows little shift in rate expectations
By Michael Connor
NEW YORK, Aug 4 U.S. Treasuries prices edged up
on Monday amid receding investor worries over an
earlier-than-expected interest-rate hike by Federal Reserve
Treasuries rallied on Friday, when U.S. employment data for
July showed flat wage gains for hourly workers and a rise in the
national unemployment rate to 6.2 percent.
The data calmed fears about inflation, which could spur
higher interest rates and lower bond prices.
On Monday, prices rose for both intermediate and long
maturities, with 3-year to 7-year maturities at center stage,
according to Jake Lowery, portfolio manager at Voya Investment
Management in Atlanta.
"Intermediate maturity Treasuries continue to rally as a
follow-up to Friday, when they did the same. The market seems
comfortable with the Fed statement last week and the uptick in
unemployment," Lowery said. "We are likely to stay in a low
volatility environment for some time."
A Reuters poll on Friday showed that a majority of Wall
Street's top bond firms see no move by the Fed to increase
interest rates from historic lows before the second half of next
"The market is focused on how long the Fed can be expected to
maintain its dovish tone. That's why today's rally has been
focused on the shorter maturities," Lowery said.
Benchmark 10-year notes were last up 7/32 in
price to yield 2.48 percent, down from 2.495 percent at Friday's
close. The 30-year was up 10/32 to yield 3.28
Among intermediate maturities, the 7-year was
ahead 6/32 and yielding 2.13 percent, down from 2.15 percent at
the close on Friday.
Investor buying patterns are shifting, with some demand
leaving the market's long end, Lowery said. The buying had
narrowed the differences among Treasuries maturities.
"Over the last couple of months, the curve has flattened
relentlessly, with the 30 generally outperforming the rest of
the curve," he said. "That's based on some strong demand that
the market has been seeing from foreign central banks, as well
as some large money managers. Buying from those sources seems to
have slowed down in the past week or so."
(Reporting By Michael Connor in New York; Editing by Bernadette