January 24, 2019 / 3:29 PM / 4 months ago

TREASURIES-Trade, growth worries drag U.S. bond yields lower

    * U.S.'s Ross says U.S., China "miles and miles" apart on
trade
    * ECB's Draghi says risk moved to downside
    * Euro zone business growth stalls in January - Markit 
    * U.S. jobless claims fall to over 49-year low 

 (Updates market action, adds background)
    By Richard Leong
    NEW YORK, Jan 24 (Reuters) - Treasury yields fell on
Thursday, with the 10-year's yield hitting a one-week low, as
anxiety about slowing global growth and trade tensions between
China and the United States renewed safe-haven demand for U.S.
government debt.
    Investor worries rose after U.S. Commerce Secretary Wilbur
Ross said the world's two biggest economies are "miles and
miles" from resolving their trade issues, although there is a
fair chance of reaching a deal.
    Across the Atlantic, European Central Bank President Mario
Draghi cautioned regional economic risks shifted to the downside
and hinted the ECB would leave interest rates at record lows
"through" the summer.
    Business growth in the euro zone weakened to its lowest
reading since July 2013 in January, according to IHS Markit.

    As other areas of the U.S. economy have weakened, the
American jobs market has remained a bright spot.
    The Labor Department said first-time filings for
unemployment benefits fell to 199,000 last week, the lowest
level in more than 49 years.
    At 10:20 a.m. EST (1520 GMT), the yield on benchmark 10-year
Treasury notes was 3.2 basis points lower at 2.723
percent. It hit a one-week low of 2.708 percent earlier
Thursday.
    
January 24 Thursday 10:20AM New York / 1520 GMT
                               Price                  
 US T BONDS MAR9               145-17/32    18/32     
 10YR TNotes MAR9              121-172/256  9/32      
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             2.355        2.4018    -0.008
 Six-month bills               2.445        2.5098    -0.003
 Two-year note                 99-221/256   2.5725    -0.019
 Three-year note               99-224/256   2.5438    -0.030
 Five-year note                100-82/256   2.5552    -0.036
 Seven-year note               99-252/256   2.6273    -0.038
 10-year note                  103-116/256  2.721     -0.034
 30-year bond                  106-108/256  3.0455    -0.023
         YIELD CURVE           Last (bps)   Net       
                                            Change    
                                            (bps)     
 10-year vs 2-year yield       14.60        -0.85     
 30-year vs 5-year yield       49.00        0.55      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap        14.75        -0.25    
 spread                                               
 U.S. 3-year dollar swap        11.50         0.25    
 spread                                               
 U.S. 5-year dollar swap         8.00         0.25    
 spread                                               
 U.S. 10-year dollar swap        2.75         0.00    
 spread                                               
 U.S. 30-year dollar swap      -18.50         0.00    
 spread                                               
 
    

 (Reporting by Richard Leong; editing by Jonathan Oatis)
  
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