July 7, 2020 / 2:09 PM / a month ago

TREASURIES-Yields lower as reopenings rolled back

    By Ross Kerber
    BOSTON, July 7 (Reuters) - U.S. Treasury yields ticked lower
on Tuesday as a rising COVID-19 caseload raised concerns about
reopening plans.
    The benchmark 10-year yield was down 1.5 basis
points in morning trading at 0.6693%.
    Wall Street's main indexes opened lower on Tuesday following
the benchmark S&P 500's longest streak of gains this year.

    Treasury yields had risen on Monday, but Tuesday's early
trading showed investors remain concerned about the U.S.
economic outlook, said Jim Barnes, director of fixed income for
Bryn Mawr Trust.
    "After of a day of risk-on it's probably not going to take
much for people to be reminded that economic conditions still
have a long way to go to get back to precrisis levels," Barnes
said.
     On Monday, Florida's greater Miami area became the latest 
coronavirus hot spot to roll back its reopening, ordering
restaurant dining closed, as COVID-19 cases surged nationwide 
and the U.S. death toll topped 130,000.
    Oil prices also fell on Tuesday on concerns a surge in new
virus cases will hamper a recovery in fuel demand.
    Treasury investors will focus on the results of an auction
of 3-year notes due in the early afternoon.
    A closely watched part of the U.S. Treasury yield curve
measuring the gap between yields on two- and 10-year Treasury
notes, seen as an indicator of economic
expectations, was at 51 basis points, about a basis point lower
than Monday's close and in line with its level since mid-June.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was unchanged at
0.1606% in morning trading.
      July 7 Tuesday 9:46AM New York / 1346 GMT
                                                      
                                                      
                                                      
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.1475       0.15      -0.005
 Six-month bills               0.1625       0.1649    -0.002
 Two-year note                 99-238/256   0.1606    0.000
 Three-year note               100-46/256   0.1886    -0.002
 Five-year note                99-192/256   0.3006    -0.006
 Seven-year note               100-4/256    0.4977    -0.013
 10-year note                  99-148/256   0.6693    -0.015
 20-year bond                  98-224/256   1.1888    -0.018
 30-year bond                  95-192/256   1.4253    -0.017
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         5.75        -0.50    
 spread                                               
 U.S. 3-year dollar swap         3.75        -0.50    
 spread                                               
 U.S. 5-year dollar swap         2.50        -0.25    
 spread                                               
 U.S. 10-year dollar swap       -3.00         0.00    
 spread                                               
 U.S. 30-year dollar swap      -49.75         0.00    
 spread                                               
                                                      
 

 (Reporting by Ross Kerber in Boston; Editing by Bernadette
Baum)
  
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