Yahoo Finance TREASURIES-Yields fall ahead of TIPS auction
By Karen Pierog CHICAGO, July 23 (Reuters) - U.S. Treasury yields on the longer end of the yield curve drifted lower on Thursday as stocks fell and the market awaited an auction of $14 billion of 10-year Treasury-Inflation Protected Securities (TIPS). The benchmark 10-year yield was last down 1.4 basis points at 0.5807%. A rush into TIPS has pushed yields to near historic lows amid an uptick in inflation expectations. The 10-year TIPS yield was last at -0.909%. "With the amount of stimulus that's out there, it's hard to believe that there's not some inflation that's going to come out of this," said John Mousseau, president and CEO of Cumberland Advisors, who advised caution on the timing of buying TIPS given the low yields. More talks were on tap on Thursday between the White House and lawmakers over the next round of stimulus measures to combat the economic fallout from the coronavirus outbreak. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up less than a basis point at 0.1493%. A closely-watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, which is viewed as an indicator of economic expectations, was last at 43 basis points, about 1.4 basis point lower than at Wednesday's close. July 23 Thursday 9:29AM New York / 1429 GMT Price Current Net Yield % Change (bps) Three-month bills 0.115 0.1166 -0.005 Six-month bills 0.1325 0.1344 0.002 Two-year note 99-244/256 0.1493 0.002 Three-year note 99-222/256 0.1698 0.000 Five-year note 99-234/256 0.2675 -0.001 Seven-year note 100-108/256 0.4382 -0.009 10-year note 100-108/256 0.5807 -0.014 20-year bond 101-140/256 1.0384 -0.026 30-year bond 99-192/256 1.2601 -0.030 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 6.00 -0.25 spread U.S. 3-year dollar swap 4.75 0.00 spread U.S. 5-year dollar swap 3.25 0.00 spread U.S. 10-year dollar swap -1.75 0.25 spread U.S. 30-year dollar swap -45.50 1.00 spread (By Karen Pierog Editing by Nick Zieminski)
