(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)
Source: Read Full Article