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Bonds News

TREASURIES-Yields rise as risk sentiment improves

 (Adds seven-year auction results, updates prices)
    By Karen Brettell
    NEW YORK, May 28 (Reuters) - U.S. Treasury yields rose on
Thursday as stocks gained, reducing demand for safe haven bonds,
and after the Treasury sold a record large amount of seven-year
notes to slightly soft demand.
    Wall Street's major indexes rose on Thursday, boosted by
gains in healthcare and technology stocks, as investors bet on a
swift recovery from a coronavirus-driven economic slump.
    "It's an extension of some of the risk-on tone that we've
seen lately," said Zach Griffiths, an interest rate strategist
at Wells Fargo in Charlotte, North Carolina.
    Benchmark 10-year notes rose three basis points
to 0.703%.
    The yields have traded in a range from 0.543% to 0.785%
since the beginning of April.
    The Treasury sold a record $38 billion in seven-year notes
to slightly soft demand, its final sale of intermediate-dated
debt this week.
    A record $45 billion five-year note auction on Wednesday was
also soft, while a record $44 billion in two-year notes on
Tuesday saw solid interest.
    The Treasury has been increasing the size of its debt
auctions as it finances spending meant to blunt the economic
impact of business shutdowns aimed at stemming the spread of the
coronavirus.
    Data on Thursday showed that the number of Americans seeking
jobless benefits fell for an eighth straight week last week,
likely as some people returned to work, but claims remained at
astonishingly high levels, suggesting it could take the economy
a while to rebound as businesses reopen.
    
      May 28 Thursday 2:33PM New York / 1833 GMT
                               Price                  
 US T BONDS JUN0               178-24/32    -0-23/32  
 10YR TNotes JUN0              138-248/256  -0-40/25  
                                            6         
                               Price        Current   Net Change
                                            Yield %   (bps)
 Three-month bills             0.145        0.1475    0.005
 Six-month bills               0.1675       0.17      -0.003
 Two-year note                 99-230/256   0.176     -0.006
 Three-year note               99-182/256   0.223     0.003
 Five-year note                99-136/256   0.3447    0.007
 Seven-year note               99-192/256   0.5368    0.021
 10-year note                  99-64/256    0.7031    0.026
 30-year bond                  94-176/256   1.4698    0.037
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         9.00         0.75    
 spread                                               
 U.S. 3-year dollar swap         6.00         0.25    
 spread                                               
 U.S. 5-year dollar swap         4.50         1.00    
 spread                                               
 U.S. 10-year dollar swap       -1.25         0.00    
 spread                                               
 U.S. 30-year dollar swap      -47.75        -0.50    
 spread                                               
 
 (Reporting by Karen Brettell; Editing by Bernadette Baum and
Will Dunham)
  
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