June 6, 2017 / 2:31 PM / 4 months ago

TREASURIES-U.S. yields fall as jittery investors pile into bonds

    * Longer-dated yields touch lowest levels since November
    * Investors eye U.K. election, ECB meeting, Comey testimony
    * China may buy more U.S. bonds as yuan steadies -Bloomberg

 (Updates market action, adds quote)
    By Richard Leong
    NEW YORK, June 6 (Reuters) - U.S. Treasury yields fell on
Tuesday as nervous investors favored bonds and other safe-haven
assets ahead of a trio of events on Thursday: Britain's general
election, the European Central Bank's policy meeting and former
FBI Director James Comey's testimony before a Senate panel. 
    A tightening race between the ruling Conservative Party over
the opposition Labor Party, based on recent polls, raised
uncertainty about Britain's path in its divorce from the
European Union.
    Traders have speculated whether ECB policymakers might
signal a possible end to the central bank's bond purchase
program at its upcoming meeting in light of evidence of an
improving European economy. 
    Comey's first public appearance since he was fired by U.S.
President Donald Trump might shed more light on a probe by the
Federal Bureau of Investigation into alleged Russian meddling in
last year's U.S. presidential election.
    "We have risk events piling up," said Blake Gwinn, U.S.
rates strategist at NatWest Markets in Stamford, Connecticut.
"We'll be very focused on what happens on Thursday, but it might
end up being a dud."
    Safe-haven bids pushed benchmark U.S. 10-year Treasury
yields to 2.129 percent, the lowest since Nov. 10, which was two
days after Trump's surprise election victory. 
    At 10:02 a.m. (1502 GMT), the 10-year yield was
2.145 percent, down nearly 4 basis points from late on Monday,
Reuters data showed.
    A Bloomberg report that said China was ready to purchase
more U.S. government debt as the yuan has stabilized brought a
wave of Treasuries buying earlier on Tuesday, analysts said.

    "It's just one more factor in a risk-off day," Gwinn said.
  June 6 Tuesday 10:03AM New York / 1403 GMT
                               Price                  
 US T BONDS SEP7               155-2/32     0-23/32   
 10YR TNotes SEP7              126-196/256  0-76/256  
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.9675       0.9834    -0.005
 Six-month bills               1.065        1.0857    0.000
 Two-year note                 99-234/256   1.294     -0.012
 Three-year note               100-56/256   1.4236    -0.019
 Five-year note                100-48/256   1.7105    -0.030
 Seven-year note               100-68/256   1.9591    -0.036
 10-year note                  102-12/256   2.1451    -0.035
 30-year bond                  103-228/256  2.807     -0.033
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap        20.75        -0.50    
 spread                                               
 S U.S. 3-year dollar swap      19.00         0.00    
 spread                                               
 U.S. 5-year dollar swap         7.75         0.25    
 spread                                               
 U.S. 10-year dollar swap       -5.25         0.25    
 spread                                               
 U.S. 30-year dollar swap      -43.75         0.00    
 spread                                               
 
   

    
 (Reporting by Richard Leong; Editing by Meredith Mazzilli)
  
 

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