April 24, 2020 / 1:51 PM / a month ago

TREASURIES-Yields steady as investors stick with riskier assets

    By Ross Kerber
    BOSTON, April 24 (Reuters) - U.S. Treasury yields were
little changed on Friday as investors stuck with riskier assets
like stocks despite dim prospects of a quick economic rebound
after the novel coronavirus pandemic. 
    The benchmark 10-year yield was up less than a
basis point at 0.6165%.
    "It's anchored in," said Michael Lorizio, senior fixed
income trader for Manulife Investment Management. 
    It could be years before the Federal Reserve looks to raise
interest rates again, he said. The U.S. central bank cut rates
three times last year, and it has reduced its overnight
benchmark lending rate to near zero because of the pandemic.
    While investors do not expect a quick economic comeback as
the pandemic plays out, they are willing to hold enough
longer-term assets like stocks and corporate debt to keep the
yields on ultra-safe U.S. treasuries stable for now.
    "There's still enough support for risk assets," Lorizio
said.
    The U.S. death toll from COVID-19, the respiratory illness
caused by the coronavirus, is expected to reach 50,000 on
Friday, doubling in 10 days and the highest in the world,
according to a Reuters tally.
    After passing about $3 trillion of coronavirus-related
relief in a rare seven-week run of bipartisanship, the U.S.
Congress was split on Friday over providing aid for cities and
states. Republicans have lined up against the idea while
Democrats say it is essential.
    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 39 basis points, about a basis point higher
than its close on Thursday.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was up less than
a basis point at 0.2204%.
    
      April 24 Friday 9:11AM New York / 1311 GMT
                               Price                  
 US T BONDS JUN0               181-12/32    -0-1/32   
 10YR TNotes JUN0              138-240/256  -0-20/25  
                                            6         
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.1125       0.1144    0.005
 Six-month bills               0.1425       0.1446    0.000
 Two-year note                 100-76/256   0.2204    0.001
 Three-year note               99-238/256   0.2738    0.008
 Five-year note                100-154/256  0.3766    0.008
 Seven-year note               100-172/256  0.5261    0.010
 10-year note                  108-100/256  0.6165    0.006
 30-year bond                  119-216/256  1.2054    0.002
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap        15.75        -2.25    
 spread                                               
 U.S. 3-year dollar swap         9.75        -1.75    
 spread                                               
 U.S. 5-year dollar swap         6.75        -1.00    
 spread                                               
 U.S. 10-year dollar swap        3.00        -0.50    
 spread                                               
 U.S. 30-year dollar swap      -41.25        -0.50    
 spread                                               
 
    

 (Reporting by Ross Kerber in Boston
Editing by Paul Simao)
  
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