(Adds seven-year auction results, updates prices)
By Karen Brettell
NEW YORK, May 28 (Reuters) - U.S. Treasury yields rose on
Thursday as stocks gained, reducing demand for safe haven bonds,
and after the Treasury sold a record large amount of seven-year
notes to slightly soft demand.
Wall Street's major indexes rose on Thursday, boosted by
gains in healthcare and technology stocks, as investors bet on a
swift recovery from a coronavirus-driven economic slump.
"It's an extension of some of the risk-on tone that we've
seen lately," said Zach Griffiths, an interest rate strategist
at Wells Fargo in Charlotte, North Carolina.
Benchmark 10-year notes rose three basis points
to 0.703%.
The yields have traded in a range from 0.543% to 0.785%
since the beginning of April.
The Treasury sold a record $38 billion in seven-year notes
to slightly soft demand, its final sale of intermediate-dated
debt this week.
A record $45 billion five-year note auction on Wednesday was
also soft, while a record $44 billion in two-year notes on
Tuesday saw solid interest.
The Treasury has been increasing the size of its debt
auctions as it finances spending meant to blunt the economic
impact of business shutdowns aimed at stemming the spread of the
coronavirus.
Data on Thursday showed that the number of Americans seeking
jobless benefits fell for an eighth straight week last week,
likely as some people returned to work, but claims remained at
astonishingly high levels, suggesting it could take the economy
a while to rebound as businesses reopen.
May 28 Thursday 2:33PM New York / 1833 GMT
Price
US T BONDS JUN0 178-24/32 -0-23/32
10YR TNotes JUN0 138-248/256 -0-40/25
6
Price Current Net Change
Yield % (bps)
Three-month bills 0.145 0.1475 0.005
Six-month bills 0.1675 0.17 -0.003
Two-year note 99-230/256 0.176 -0.006
Three-year note 99-182/256 0.223 0.003
Five-year note 99-136/256 0.3447 0.007
Seven-year note 99-192/256 0.5368 0.021
10-year note 99-64/256 0.7031 0.026
30-year bond 94-176/256 1.4698 0.037
DOLLAR SWAP SPREADS
Last (bps) Net
Change
(bps)
U.S. 2-year dollar swap 9.00 0.75
spread
U.S. 3-year dollar swap 6.00 0.25
spread
U.S. 5-year dollar swap 4.50 1.00
spread
U.S. 10-year dollar swap -1.25 0.00
spread
U.S. 30-year dollar swap -47.75 -0.50
spread
(Reporting by Karen Brettell; Editing by Bernadette Baum and
Will Dunham)
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