* Month-end buying supports Treasuries prices
* Yields fall from multi-month and multi-year highs
* Traders view Trump-induced selloff as possibly overdone
* Italy referendum, ECB and OPEC meeting outcomes awaited
(Updates prices, adds comment)
By Sam Forgione
NEW YORK, Nov 28 U.S. Treasury yields fell on
Monday from last week's highs on month-end buying and views that
a selloff that followed the surprise U.S. presidential election
victory of Donald Trump may have gone too far.
Analysts said demand for U.S. government bonds, which
typically kicks in toward the end of the month as investors seek
to rebalance their portfolios, was supporting prices and pushing
Traders were also likely buying Treasuries on the view that
the selloff, which sent benchmark 10-year yields to a 16-month
high of 2.417 percent on Nov. 23 and two-year yields to a
6-1/2-year high of 1.17 percent on Friday, had become
overextended, analysts added.
"The selloff has been quite dramatic," said Subadra Rajappa,
head of U.S. rates strategy at Societe Generale in New York. "It
has kind of run ahead of itself."
Fueling the selloff were bets that Trump will adopt policies
that increase spending and debt as well as spur growth and
inflation, all of which would likely erode the value of U.S.
U.S. 10-year Treasuries were last up 14/32 in
price to yield 2.3214 percent, from a yield of 2.370 percent
late Friday. Two-year notes were last up 1/32 in
price to yield 1.1109 percent, from a yield of 1.135 percent
Other maturities were also lower in yield, with 30-year
yields last down three basis points from late Friday
at 2.9851 percent and seven-year yields last down
five basis points at 2.1371 percent.
"I would say a little bit of it is probably the month-end
buying after a very significant move earlier in the month," said
Lou Brien, a market strategist at DRW Trading in Chicago. He
said weakness in U.S. stocks was also spurring demand for
The benchmark S&P 500 stock index was last down 0.33
percent. U.S. Treasuries are on track to fall 2.7 percent in
November to mark their worst monthly performance since Jan.
2009, according to Bloomberg Barclays index data.
Rajappa of Societe Generale said investors were also bracing
for Italy's Dec. 4 referendum on constitutional reform and the
Dec. 8 meeting of the European Central Bank. Uncertainty over
the outcomes of those events has likely contributed to the pause
in the Treasury market's selloff, Rajappa said.
Traders are also awaiting Friday's U.S. November jobs
report. Economists polled by Reuters expect U.S. employers to
have added 175,000 jobs.
November 28 Monday 3:04PM New York / 2004 GMT
US T BONDS DEC6 153-20/32 0-26/32
10YR TNotes DEC6 125-160/256 0-108/25
Price Current Net
Yield % Change
Three-month bills 0.465 0.472 -0.030
Six-month bills 0.5875 0.5974 -0.036
Two-year note 99-200/256 1.1109 -0.024
Three-year note 98-238/256 1.37 -0.040
Five-year note 99-192/256 1.8025 -0.044
Seven-year note 99-244/256 2.1322 -0.057
10-year note 97-44/256 2.3196 -0.050
30-year bond 97-212/256 2.9851 -0.033
DOLLAR SWAP SPREADS
Last (bps) Net
U.S. 2-year dollar swap 20.25 -0.50
U.S. 3-year dollar swap 13.00 0.25
U.S. 5-year dollar swap -2.00 0.50
U.S. 10-year dollar swap -16.75 0.75
U.S. 30-year dollar swap -56.00 0.75
(Reporting by Sam Forgione and Karen Brettell; Editing by