* Trump indicates compromise on budget * Treasury to sell $88 billion notes this week * Rising stocks reduce demand for bonds By Karen Brettell NEW YORK, April 25 U.S. Treasury yields rose on Tuesday as President Donald Trump indicated he would compromise on a budget that, if passed, would avert a government shutdown and as investors prepared for new Treasury supply. Trump indicated an openness on Monday to delaying his push to secure funds for his promised border wall with Mexico, potentially eliminating a budget sticking point. If the government is shut down for any significant period of time, the Federal Reserve would not have access to data needed to gauge the strength of the economy, reducing the likelihood of a near-term rate increase. Investors and dealers are also preparing for the sale of $88 billion in new short- and intermediate-dated supply this week, starting with a $26 billion sale of two-year notes on Tuesday. “I’d be surprised if many people are set up for this week’s Treasury supply, given the concerns over the weekend with the French election,” said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York. Benchmark 10-year notes were last down 8/32 in price to yield 2.30 percent, up from 2.27 percent late on Monday. The yields hit five-month lows of 2.17 percent last Tuesday as concerns grew about France’s vote. Centrist Emmanuel Macron is now expected to defeat far-right leader Marine Le Pen in the May 7 presidential runoff. Rising stocks and stronger risk sentiment also reduced demand for safe-haven bonds on Tuesday. “It’s more of a 'risk on' tone today,” said Lederer. Investors are also more optimistic that Trump will announce tax reforms that will help boost the economy. Expectations that the Fed may raise interest rates at its June meeting have increased since Trump unexpectedly said on Friday that large tax cuts would be announced this Wednesday. Futures traders are pricing in a 71 percent chance of June rate hike, up from 49 percent last Wednesday, according to the CME Group’s FedWatch Tool. (Editing by Lisa Von Ahn) )
UPDATE 1-Brazil's BNDESPar calls JBS shareholder meeting to shuffle board
SAO PAULO, June 26 The investment arm of Brazil's state development bank BNDES has convened a JBS SA shareholder meeting to remove the controlling Batista family from the meatpacker's management and board, in the latest twist involving the world's No. 2 food processor.