May 12, 2017 / 3:19 PM / 2 months ago

TREASURIES-U.S. bond yields fall as CPI, retail sales data miss forecasts

4 Min Read

 (Updates to U.S. mid-morning, adds quote)
    By Richard Leong
    NEW YORK, May 12 (Reuters) - U.S. Treasury yields fell on
Friday as weaker-than-expected data on domestic consumer prices
and retail sales in April scaled back expectations of a strong
U.S. economic rebound in the second quarter and revived appetite
for bonds.
    The benchmark 10-year Treasury yield fell 6
basis points to 2.338 percent. It reached 2.423 percent, a near
six-week peak, on Thursday in reaction a surprisingly strong
report in U.S. producer prices in April.
    "It's a pretty clear data response, but it's not going to
take us out of the trading range that has been recently carved
out," said Blake Gwinn, U.S. rates strategist at NatWest Markets
in Stamford, Connecticut.    
    The 30-year bond yield decreased 4 basis points
to 2.995 percent. It climbed to 3.059 percent on Thursday, which
was the highest since March 21, Reuters data showed.
    U.S. yields rose broadly earlier this week on heavy
government and corporate bond supply, along with centrist
Emmanuel Macron's presidential win in France last Sunday, which
spurred investors to reduce their safe-haven bond holdings.
    Friday's demand for Treasuries also stemmed from
bargain-minded investors. They emerged after the completion of
the $62 billion May refunding supply, in which investors gave a
cool reception to new issues of three-year, 10-year and 30-year
government debt, analysts and traders said.
  May 12 Friday 10:57AM New York / 1457 GMT
                               Price                  
 US T BONDS JUN7               151-15/32    0-27/32   
 10YR TNotes JUN7              125-124/256  0-144/25  
                                            6         
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.8625       0.8763    -0.008
 Six-month bills               1.01         1.0292    -0.008
 Two-year note                 99-232/256   1.2985    -0.049
 Three-year note               100-4/256    1.4947    -0.061
 Five-year note                100-20/256   1.8584    -0.068
 Seven-year note               99-28/256    2.1384    -0.071
 10-year note                  100-96/256   2.3327    -0.067
 30-year bond                  100-36/256   2.9929    -0.046
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap        24.50        -0.50    
 spread                                               
 U.S. 3-year dollar swap        20.25         0.25    
 spread                                               
 U.S. 5-year dollar swap         6.50         0.25    
 spread                                               
 U.S. 10-year dollar swap       -7.75         0.50    
 spread                                               
 U.S. 30-year dollar swap      -46.50        -0.25    
 spread                                               
 
    

    
 (Reporting by Richard Leong; Editing by Dan Grebler)
  
 

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