(Updates prices, table, adds analyst comments)
* Most U.S. yields hit lowest in at least 13 days
* Uncertainty surrounding Trump policies spurs safety buying
* Bund yields fall, driving demand for Treasuries
By Sam Forgione
NEW YORK, Feb 6 U.S. short- and medium-dated
Treasury yields hit their lowest levels in at least 13 days on
Monday on mounting European political uncertainty and a dearth
of information on U.S. President Donald Trump's promised
With Trump's promises to cut corporate taxes and boost
infrastructure spending yet to be fleshed out, analysts said the
risk was increasing that the plans would fade further into the
A growing concern is that Trump's tax and spending plans
have taken a back seat to other issues such as his temporary
immigration ban, spurring demand for safe-haven Treasuries,
Benchmark 10-year Treasury yields touched 2.406 percent,
their lowest level since Jan. 24. U.S. two- and seven-year
yields also fell to their lowest since that date to 1.153
percent and 2.180 percent.
U.S. three-year yields touched 1.405 percent, their lowest
in nearly three weeks, and five-year yields touched their lowest
in more than two weeks at 1.844 percent.
U.S. 30-year Treasuries prices rose by more than
a full point and their yields touched a session low of 3.045
percent, a level that was within recent ranges.
"The longer Congress and the Trump administration dither on
fiscal stimulus, the less likely in everyone's estimation that
it will come to pass," said Aaron Kohli, an interest rate
strategist at BMO Capital Markets in New York.
Kohli said traders who may have bet against or "shorted"
Treasuries on expectations that such stimulus would be a higher
priority may be buying back or covering those positions,
contributing to the rally in prices and drop in yields.
A decline in German Bund yields on a cloudier political
outlook in Europe helped stoke demand for U.S. debt, said John
Briggs, head of strategy for the Americas at NatWest Markets.
France's far-right party leader Marine Le Pen launched her
bid for the presidency on Sunday with a vow to fight deregulated
globalization and to take France out of the euro, leading French
10-year government bond yields to hit their
highest since September 2015 of 1.160 percent and 10-year Bund
yields to hit a two-week low of 0.360 percent.
The U.S. Treasury will sell $24 billion in three-year notes
Tuesday, $23 billion in 10-year notes Wednesday, and $15 billion
in 30-year bonds Thursday.
February 6 Monday 3:23PM New York / 2023 GMT
US T BONDS MAR7 151-15/32 1-14/32
10YR TNotes MAR7 124-240/256 0-168/25
Price Current Net
Yield % Change
Three-month bills 0.5125 0.5203 0.015
Six-month bills 0.615 0.6254 -0.008
Two-year note 99-238/256 1.161 -0.048
Three-year note 99-226/256 1.4158 -0.062
Five-year note 100-22/256 1.8568 -0.076
Seven-year note 100-96/256 2.1917 -0.082
10-year note 96-100/256 2.4169 -0.074
30-year bond 96-140/256 3.0523 -0.062
DOLLAR SWAP SPREADS
Last (bps) Net
U.S. 2-year dollar swap 32.00 1.75
U.S. 3-year dollar swap 25.75 1.25
U.S. 5-year dollar swap 9.50 1.25
U.S. 10-year dollar swap -7.00 1.25
U.S. 30-year dollar swap -40.50 1.25
(Reporting by Sam Forgione Editing by W Simon and Cynthia