August 1, 2014 / 1:10 PM / 3 years ago

U.S. SWAPS-Long-dated spreads pare widening after jobs data

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)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below