Bonds News

TREASURIES-Yields fall on lack of detail over Trump's pro-growth plans

(Updates prices, table, adds analyst comments)
    * Most U.S. yields hit lowest in at least 13 days
    * Uncertainty surrounding Trump policies spurs safety buying
    * Bund yields fall, driving demand for Treasuries

    By Sam Forgione
    NEW YORK, Feb 6 (Reuters) - U.S. short- and medium-dated
Treasury yields hit their lowest levels in at least 13 days on
Monday on mounting European political uncertainty and a dearth
of information on U.S. President Donald Trump's promised
pro-growth policies.
    With Trump's promises to cut corporate taxes and boost
infrastructure spending yet to be fleshed out, analysts said the
risk was increasing that the plans would fade further into the
    A growing concern is that Trump's tax and spending plans
have taken a back seat to other issues such as his temporary
immigration ban, spurring demand for safe-haven Treasuries,
analysts said. 
    Benchmark 10-year Treasury yields touched 2.406 percent,
their lowest level since Jan. 24. U.S. two- and seven-year
yields also fell to their lowest since that date to 1.153
percent and 2.180 percent. 
    U.S. three-year yields touched 1.405 percent, their lowest
in nearly three weeks, and five-year yields touched their lowest
in more than two weeks at 1.844 percent.  
    U.S. 30-year Treasuries prices rose by more than
a full point and their yields touched a session low of 3.045
percent, a level that was within recent ranges. 
    "The longer Congress and the Trump administration dither on
fiscal stimulus, the less likely in everyone's estimation that
it will come to pass," said Aaron Kohli, an interest rate
strategist at BMO Capital Markets in New York.
    Kohli said traders who may have bet against or "shorted"
Treasuries on expectations that such stimulus would be a higher
priority may be buying back or covering those positions,
contributing to the rally in prices and drop in yields. 
    A decline in German Bund yields on a cloudier political
outlook in Europe helped stoke demand for U.S. debt, said John
Briggs, head of strategy for the Americas at NatWest Markets. 
    France's far-right party leader Marine Le Pen launched her
bid for the presidency on Sunday with a vow to fight deregulated
globalization and to take France out of the euro, leading French
10-year government bond yields to hit their
highest since September 2015 of 1.160 percent and 10-year Bund
yields to hit a two-week low of 0.360 percent.
    The U.S. Treasury will sell $24 billion in three-year notes
Tuesday, $23 billion in 10-year notes Wednesday, and $15 billion
in 30-year bonds Thursday. 
February 6 Monday 3:23PM New York / 2023 GMT
 US T BONDS MAR7               151-15/32    1-14/32   
 10YR TNotes MAR7              124-240/256  0-168/25  
                               Price        Current   Net
                                            Yield %   Change
 Three-month bills             0.5125       0.5203    0.015
 Six-month bills               0.615        0.6254    -0.008
 Two-year note                 99-238/256   1.161     -0.048
 Three-year note               99-226/256   1.4158    -0.062
 Five-year note                100-22/256   1.8568    -0.076
 Seven-year note               100-96/256   2.1917    -0.082
 10-year note                  96-100/256   2.4169    -0.074
 30-year bond                  96-140/256   3.0523    -0.062
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
 U.S. 2-year dollar swap        32.00         1.75    
 U.S. 3-year dollar swap        25.75         1.25    
 U.S. 5-year dollar swap         9.50         1.25    
 U.S. 10-year dollar swap       -7.00         1.25    
 U.S. 30-year dollar swap      -40.50         1.25    
 (Reporting by Sam Forgione Editing by W Simon and Cynthia