(Adds supply comments, table) By Kate Duguid NEW YORK, Sept 29 (Reuters) - U.S. Treasury yields were slightly lower on Tuesday, trading within a tight range as investors held off from making large moves ahead of the presidential debate scheduled for later in the day and employment data to be released on Wednesday and Friday. The yield on the benchmark 10-year Treasury note has opened or closed within a range of 0.65% to 0.70% for 15 consecutive sessions, said Andrew Brenner, head of international fixed income at NatAlliance Securities. The 10-year yield opened at 0.658% on Tuesday and was last trading lower on the day at 0.641%. The long bond was also trading within range, down 2.1 basis points at 1.402%. The two-year yield was down 0.2 basis point on the day at 0.129%. The anchored two-year yield has pulled the yield curve, as measured by the spread between the two- and 10-year yields, flatter. A tightening trading range typically indicates that a move is imminent. "Treasuries are poised to make a move," said Brenner, "These are wound-up in a narrow range." But the breakout is unlikely to happen during Tuesday's session. The presidential debate Tuesday evening could potentially move markets if a poor performance from either candidate changes the electoral calculus. But the low levels of implied volatility as indicated by the MOVE index suggest the market believes the debate will be a non-event. "The current backdrop isn't the setting up for a volatile session today, even if the narrowing range confines suggest a breakout is in the offing," wrote Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets. Republican President Donald Trump and his Democratic rival Joe Biden will go head-to-head in their first televised debate on Tuesday evening. With five weeks to go until the Nov. 3 general election, the stakes are high. Trump has recently refused to commit to a peaceful transfer of power if he loses the election to Biden, and has said the Supreme Court may have to declare a winner. A light schedule of data releases at the start of the week has also kept Treasuries within a tight range. A breakout may be possible if there are major surprises in either the private payrolls data from ADP to be released on Wednesday morning or the government's closely-watched monthly payrolls figures released Friday. Treasuries also have an opportunity to break out of the current ranges because this week has seen a temporary pause in government note and bond issuance, said Brenner. The Treasury Department has issued more than $3 trillion in new debt since the end of February. September 29 Tuesday 12:19PM New York / 1619 GMT Price US T BONDS DEC/d 177-10/32 15/32 10YR TNotes DE/d 139-196/256 5/32 Price Current Net Yield % Change (bps) Three-month bills 0.0925 0.0941 -0.010 Six-month bills 0.105 0.1065 -0.001 Two-year note 99-254/256 0.1289 -0.002 Three-year note 99-238/256 0.1488 -0.002 Five-year note 99-252/256 0.2531 -0.013 Seven-year note 99-144/256 0.4385 -0.019 10-year note 99-212/256 0.643 -0.020 30-year bond 99-92/256 1.4013 -0.022 YIELD CURVE Last (bps) Net Change (bps) 10-year vs 2-year yield 51.20 -1.35 30-year vs 5-year yield 114.80 -0.75 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 9.00 -0.25 spread U.S. 3-year dollar swap 8.75 0.00 spread U.S. 5-year dollar swap 7.50 0.25 spread U.S. 10-year dollar swap 3.25 0.00 spread U.S. 30-year dollar swap -33.75 -0.75 spread (Reporting by Kate Duguid Editing by Nick Zieminski)
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