TREASURIES-Longer-dated yields higher as investors watch for supply details

By Ross Kerber BOSTON, June 1 (Reuters) - Investors pushed longer-dated U.S. Treasury yields higher on Monday as they tried to forecast how the government would finance massive efforts to stimulate the economy. The benchmark 10-year yield was up 3.1 basis points at 0.6754% in morning trading. World stocks hovered near three-month highs and the dollar was flat on Monday as optimism over economies opening up again boosted risk appetite. For Treasuries, analysts said the morning trading showed investors also shrugging off widespread civil unrest in U.S. cities over the weekend and instead trying to parse out just how many 20 and 30-year bonds federal officials may sell. "The market is trying to figure out how the deficits will be funded," said Jim Barnes, director of fixed income at Bryn Mawr Trust. Generally a greater supply will lead to lower prices and higher yields. At the same time a reluctance on the part of the Federal Reserve to raise interest rates is keeping yields on shorter-term treasuries lower, Barnes said. In addition the Fed has been reducing its bond purchases, which it ramped up to historic highs in March. A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, was at 51 basis points, about 2 basis points higher than Friday's close. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was a basis point higher at 0.1662%. June 1 Monday 9:00AM New York / 1300 GMT Price US T BONDS SEP0 177-12/32 -1 10YR TNotes SEP0 138-232/256 -0-40/25 6 Price Current Net Yield % Change (bps) Three-month bills 0.14 0.1424 0.000 Six-month bills 0.165 0.1674 0.000 Two-year note 99-235/256 0.1662 0.010 Three-year note 99-198/256 0.2021 0.013 Five-year note 99-176/256 0.3131 0.013 Seven-year note 99-232/256 0.5137 0.021 10-year note 99-132/256 0.6754 0.031 30-year bond 95-20/256 1.4533 0.049 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.25 -1.00 spread U.S. 3-year dollar swap 6.00 -1.00 spread U.S. 5-year dollar swap 4.75 -0.50 spread U.S. 10-year dollar swap -1.25 -0.75 spread U.S. 30-year dollar swap -48.25 -0.75 spread (Reporting by Ross Kerber in Boston)