December 20, 2019 / 2:53 PM / a month ago

TREASURIES-U.S. Treasury yields rise on growth, consumer spending reports

    By Ross Kerber
    BOSTON, Dec 20 (Reuters) - U.S. Treasury yields rose on
Friday on relatively strong economic growth and consumer
spending reports.
    The benchmark 10-year yield was up 2.8 basis
points to 1.9364% in morning trading, reflecting greater
appetite for risk.
    Analysts pointed to a Commerce Department report showing
gross domestic product increased at a 2.1% annualized rate in
the third quarter, unrevised from the previous estimate. The
economy grew at a 2.0% pace in the second quarter.
    The report suggested a continuation of economic growth and
reinforced a sense of business momentum, said Stan Shipley,
macro research analyst at Evercore ISI. 
    "Stocks are up and oil is trending higher. People are
shifting their allocations, which became very defensive several
months ago on recession concerns. Now the odds of that are very
low," Shipley said.
    The Commerce Department's unrevised reading was in line with
economists' expectations, but consumer spending was stronger
than previously reported. There were also upgrades to business
spending on non-residential structures such as power
infrastructure.
    The two-year yield, which typically moves in step
with interest rate expectations, was up 1.9 basis points to
1.6397% in morning trading.
    
  December 20 Friday 9:37AM New York / 1437 GMT
                               Price                  
                                                      
                                                      
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             1.545        1.5766    0.003
 Six-month bills               1.5325       1.5699    0.000
 Two-year note                 99-188/256   1.6397    0.019
 Three-year note               99-220/256   1.6735    0.024
 Five-year note                98-212/256   1.7487    0.029
 Seven-year note               98-112/256   1.8661    0.027
 10-year note                  98-84/256    1.9364    0.028
 30-year bond                  100-48/256   2.3662    0.022
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         6.75         0.00    
 spread                                               
 U.S. 3-year dollar swap         2.50         0.00    
 spread                                               
 U.S. 5-year dollar swap        -0.75         0.25    
 spread                                               
 U.S. 10-year dollar swap       -4.75         0.50    
 spread                                               
 U.S. 30-year dollar swap      -29.75         0.50    
 spread                                               
 
        





 (Reporting by Ross Kerber; Editing by Dan Grebler)
  
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