June 2, 2020 / 1:51 PM / a month ago

TREASURIES-Yields steady as traders await more Fed details

    By Ross Kerber
    BOSTON, June 2 (Reuters) - U.S. Treasury yields were little
changed on Tuesday as investors waited for more guidance from
the Federal Reserve and other policymakers on how they might
respond to the ongoing economic crisis.
    The benchmark 10-year yield was up less than a
basis point at 0.6689%.
    The stable session partly reflected traders watching whether
the Fed will take steps like "yield curve control," or the
setting of yield targets for some Treasuries, said Eric
Jussaume, director of fixed income for Cambridge Trust.
    Fed officials have said yield curve control is one tool they
are evaluating as they try to maintain the economy amid the
COVID-19 pandemic.
    "Traders are on the sidelines waiting to see if they
actually use it. Nobody wants to run ahead of the central bank
on this topic," Jussaume said.
    World stocks climbed to three-month highs on Tuesday as the
global coronavirus recovery effort won out over U.S.-China
tensions and the worst civil unrest in the United States in
decades.
    A closely watched part of the U.S. Treasury yield curve
measuring the gap between yields on 2- and 10-year Treasury
notes, seen as an indicator of economic
expectations, was at 51 basis points, about a basis point higher
than Monday's close.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was up less than
a basis point at 0.1604% in morning trading.
    
      June 2 Tuesday 9:33AM New York / 1333 GMT
                               Price                  
 US T BONDS SEP0               177-17/32    -0-7/32   
 10YR TNotes SEP0              138-240/256  -0-20/25  
                                            6         
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.1475       0.1496    -0.005
 Six-month bills               0.17         0.173     -0.002
 Two-year note                 99-238/256   0.1604    0.002
 Three-year note               99-200/256   0.1994    0.005
 Five-year note                99-182/256   0.3084    0.006
 Seven-year note               99-240/256   0.5091    0.009
 10-year note                  99-148/256   0.6689    0.007
 30-year bond                  94-164/256   1.4719    0.017
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         8.25        -0.50    
 spread                                               
 U.S. 3-year dollar swap         5.50        -0.75    
 spread                                               
 U.S. 5-year dollar swap         4.75        -0.50    
 spread                                               
 U.S. 10-year dollar swap       -1.00         0.00    
 spread                                               
 U.S. 30-year dollar swap      -49.25        -0.75    
 spread                                               
 
 (Reporting by Ross Kerber in Boston; editing by Jonathan Oatis)
  
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