NEW YORK, Aug 1 (Reuters) - 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)