(Corrects to show stocks near a record in headline and first
graph)
By Karen Brettell
NEW YORK, Aug 11 (Reuters) - U.S. Treasury yields rose on
Tuesday as stocks neared record highs, reducing demand for
safe-haven debt, and before the Treasury will sell a record
amount of three-year notes, the first sale of $112 billion in
coupon-bearing supply this week.
Stocks gained after President Vladimir Putin said on Tuesday
that Russia had become the first country in the world to grant
regulatory approval to a COVID-19 vaccine after less than two
months of human testing.
“The Russian news certainly spurred another 'risk on'
session overnight,” said Tom di Galoma, managing director at
Seaport Global Holdings in New York.
Expectations of further stimulus by the U.S. government is
further boosting risk appetite.
U.S. President Donald Trump on Monday said he was
considering cutting the federal capital gains tax and lowering
income taxes for middle-income families to help the U.S. economy
recover from the economic fallout of the coronavirus pandemic.
Trump on Saturday signed executive orders and a memorandum
seeking to provide relief to workers, businesses and local
governments, but he faces opposition to the plans.
Benchmark 10-year note yields jumped six basis
points to 0.638%. They dipped as low as 0.504% on Thursday, the
lowest since March.
The yield curve between two-year and 10-year notes
steepened five basis points to 49 basis points.
The Treasury will sell a record $48 billion in three-year
notes on Tuesday as it increases debt across the curve to
finance spending meant to blunt the economic impact of the
coronavirus.
It will also sell $38 billion in 10-year notes on Wednesday
and $26 billion in 30-year bonds on Thursday.
August 11 Tuesday 9:37AM New York / 1337 GMT
Price
US T BONDS SEP0 179-19/32 -1-22/32
10YR TNotes SEP0 139-108/256 -0-116/2
56
Price Current Net
Yield % Change
(bps)
Three-month bills 0.105 0.1065 -0.002
Six-month bills 0.1225 0.1243 0.002
Two-year note 99-245/256 0.1469 0.016
Three-year note 99-222/256 0.1706 0.027
Five-year note 99-226/256 0.2738 0.040
Seven-year note 99-92/256 0.4686 0.054
10-year note 99-224/256 0.6382 0.064
20-year bond 100-140/256 1.0941 0.073
30-year bond 98-52/256 1.3232 0.076
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 7.25 -0.75
spread
U.S. 5-year dollar swap 6.00 -0.75
spread
U.S. 10-year dollar swap 0.75 -0.75
spread
U.S. 30-year dollar swap -38.50 -0.50
spread
(Reporting by Karen Brettell; editing by Jonathan Oatis)
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