January 15, 2020 / 2:26 PM / 5 days ago

REFILE-TREASURIES-U.S. yields decline on soft producer price data

 (Refiles with correct name of firm in fifth paragraph, FHN
Financial not FTN Financial)
    By Ross Kerber
    BOSTON, Jan 15 (Reuters) - U.S. Treasury yields declined on
Wednesday as investors repositioned around new data showing
producer prices barely rose in December.    
    The benchmark 10-year yield was down 3.5    
basis points in morning trading to 1.783%. 
    The U.S. Labor Department said on Wednesday its producer
price index for final demand ticked up 0.1% last month after
being unchanged in November.
    Economists polled by Reuters had forecast the PPI climbing
0.2% in December, making Wednesday's report the latest
indication of tame inflation pressures that could allow the
Federal Reserve to keep interest rates unchanged this year.
    Investors saw the data and similarly soft reports from
Europe as a signal to reposition investments that had been
pegged to a growing sense of economic optimism, said Jim Vogel,
FHN Financial interest rate strategist.
    "You can only get ahead of global developments so far," he
said.
    Caution about a pending trade deal between the United States
and China also helped drive down yields, he said, such as
caution that a Phase 2 stage of agreement may not be reached
until 2021.
    In Wednesday's daily price action, euro zone bond yields
fell from two-week highs after U.S. Treasury Secretary Steven
Mnuchin said tariffs would remain in place following the signing
of an initial trade deal, injecting some caution into
markets.
    U.S. stocks were set to open lower on Wednesday, as
investors also considered the latest earnings reports from big
U.S. banks.
    Bank of America Corp followed JPMorgan Chase & Co
 and Citigroup Inc in reporting
better-than-expected results on loan growth and strength in bond
trading, while Goldman Sachs Group Inc missed due to
weakness in its investment banking business.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was down 2 basis
points at 1.5577% in morning trading.
      January 15 Wednesday 9:19AM New York / 1419 GMT
                                                      
                                                      
                                                      
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             1.5375       1.5692    -0.003
 Six-month bills               1.535        1.5728    0.003
 Two-year note                 100-33/256   1.5577    -0.020
 Three-year note               99-210/256   1.5616    -0.026
 Five-year note                100-184/256  1.5985    -0.028
 Seven-year note               100-72/256   1.7069    -0.031
 10-year note                  99-180/256   1.783     -0.035
 30-year bond                  103          2.2366    -0.039
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         6.75         1.25    
 spread                                               
 U.S. 3-year dollar swap         3.25         1.25    
 spread                                               
 U.S. 5-year dollar swap         0.75         1.25    
 spread                                               
 U.S. 10-year dollar swap       -4.00         0.75    
 spread                                               
 U.S. 30-year dollar swap      -30.75         0.75    
 spread                                               
 
    

 (Reporting by Ross Kerber in Boston; editing by Jonathan Oatis)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below