TREASURIES-Yields fall as Apple sales warning dents risk appetite

 (Adds inverted yield curve, updates prices)
    * Apple says unlikely to meet sales guidance
    * 30-year yields lowest since September

    By Karen Brettell
    NEW YORK, Feb 18 (Reuters) - U.S. Treasury yields fell on
Tuesday after Apple Inc's warning it would miss its
sales estimate due to manufacturing slowdowns caused by the
coronavirus, denting risk appetite and increasing demand for
safe-haven bonds.
    Apple said it was unlikely to meet the March quarter sales
guidance set just three weeks ago.
    HSBC Holdings PLC also warned about the impact of
the coronavirus on its Asia business.
    "With Apple coming out and missing sales just on the
coronavirus, it continued the risk-off tone on growth concerns,"
said Justin Lederer, an interest rate strategist at Cantor
Fitzgerald in New York.
    German economic data also showed the virus weighing on
    The mood among German investors deteriorated far more than
expected in February on worries that the coronavirus outbreak
would dampen world trade.
    China reported on Tuesday its fewest new coronavirus
infections since January and its lowest daily death toll for a
week, but the World Health Organization said data suggesting the
epidemic had slowed should still be viewed with
    Benchmark 10-year note yields fell three basis
points to 1.55%.
    Thirty-year bond yields dropped four basis
points to 2.00%. They earlier fell to 1.98%, the lowest since
Sept. 5, and are approaching a record low of 1.905% set on Aug.
    A global thirst for yield and expectations that inflation
will remain tepid have increased demand for longer-dated U.S.
debt and flattened the U.S. yield curve.
    The curve between three-month bills and 10-year notes was
inverted on Tuesday at negative two basis points. It inverted in
March for the first time in over a decade, indicating that a
recession is likely in the next year or two.
      February 18 Tuesday 2:25PM New York / 1925 GMT
                               Price        Current   Net
                                            Yield %   Change
 Three-month bills             1.5475       1.5791    0.002
 Six-month bills               1.5125       1.5492    -0.005
 Two-year note                 99-241/256   1.4055    -0.018
 Three-year note               100-4/256    1.3696    -0.024
 Five-year note                99-240/256   1.3881    -0.026
 Seven-year note               100-36/256   1.4786    -0.030
 10-year note                  99-128/256   1.5542    -0.034
 30-year bond                  99-232/256   2.0042    -0.039
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
 U.S. 2-year dollar swap         2.00        -0.75    
 U.S. 3-year dollar swap         1.00        -0.50    
 U.S. 5-year dollar swap        -1.25        -0.25    
 U.S. 10-year dollar swap       -6.50        -0.75    
 U.S. 30-year dollar swap      -34.00        -0.75    

 (Editing by Jonathan Oatis and Richard Chang)