NEW YORK Aug 1 The spreads on longer-dated U.S.
interest swap rates over Treasuries yields pared their earlier
widening early Friday as a weaker-than-forecast reading on U.S.
payrolls growth in July pared some worries about the Federal
Reserve raising interest rates before the second half of 2015.
The gap between the 10-year U.S. swap rate over benchmark
10-year Treasuries yields was last 13.75 basis
points, compared with 14.25 shortly before the release of the
July jobs report.
The 10-year swap spread finished at 14.00 basis points late
on Thursday, according to Tradeweb.
Swap spreads measure the costs for traders to exchange
fixed-rate cash flows for floating-rate cash flows. They grow
with traders' expectations for interest rates to rise.
(Reporting by Richard Leong)