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Ross Kerber

TREASURIES-Yields higher after payroll losses less than expected

7:34pm IST

By Ross Kerber BOSTON, June 3 U.S. Treasury yields were higher on Wednesday after U.S. private payrolls fell by less than expected in May as businesses reopened. The benchmark 10-year yield was up 4.4 basis points in morning trading at 0.7245%. Employers laid off another 2.76 million workers in May, according to the ADP National Employment Report, following a record 19.56 million plunge in April. Economists polled by Reuters had forecast private payrolls dropping by 9 million in May. The data propelled some movement into riskier assets, driving up longer-term Treasury yields. But the data also was so far off estimates that it sent a murky message about the state of hiring and the economy, said Jim Vogel, interest rate strategist for FHN Financial. "People had written off May but now we have to take a closer look at the baseline of what really happened," he said. World shares hit three-month highs on Wednesday and the dollar fell for the sixth day running as easing lockdowns and hopes for more monetary stimulus gave investors confidence, despite civil unrest in the United States and rising COVID-19 tolls. 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 54 basis points, about 2 basis points higher than Tuesday's close. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 1.2 basis points at 0.1801% in morning trading. June 3 Wednesday 9:39AM New York / 1339 GMT Price US T BONDS SEP0 176-8/32 -1-3/32 10YR TNotes SEP0 138-128/256 -0-92/25 6 Price Current Net Yield % Change (bps) Three-month bills 0.1525 0.1547 0.003 Six-month bills 0.175 0.1781 0.000 Two-year note 99-228/256 0.1801 0.012 Three-year note 99-178/256 0.2288 0.019 Five-year note 99-132/256 0.348 0.029 Seven-year note 99-160/256 0.5548 0.037 10-year note 99-12/256 0.7245 0.044 30-year bond 93-88/256 1.5278 0.049 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 7.75 -0.25 spread U.S. 3-year dollar swap 4.75 -0.50 spread U.S. 5-year dollar swap 4.00 -0.25 spread U.S. 10-year dollar swap -1.50 -0.25 spread U.S. 30-year dollar swap -49.25 0.00 spread (Reporting by Ross Kerber in Boston; Editing by Bernadette Baum)

TREASURIES-Longer-term yields higher on supply expectations

12:48am IST

(Updates with market activity, analyst comment) By Ross Kerber BOSTON, June 2 Longer-term U.S. Treasury yields were higher on Tuesday as investors looked for more bonds to be issued in response to the ongoing economic crisis. The benchmark 10-year yield was up 1.8 basis point at 0.6803%. In addition, the part of the yield curve measuring the gap between yields on 5- and 30-year Treasuries was at 116 basis points, its highest since early 2017. The steepening reflected more U.S. bonds being sold to finance massive stimulus efforts, said Kim Rupert, senior economist for Action Economics. The dynamic has also helped stocks recover, she said. "A steepening curve does give equities a bit of a kick," she said. U.S. stocks posted modest gains on Tuesday as market participants looked past widespread social unrest and pandemic worries to focus instead on lifting lockdown restrictions and signs of economic recovery. The two-year U.S. Treasury yield was up 1 basis point at 0.1682%. The note typically moves in step with interest rate expectations, and few expect Fed officials to make dramatic changes soon. Traders are watching if the Fed will take steps like "yield curve control," or the setting of yield targets for some Treasuries, said Eric Jussaume, director of fixed income for Cambridge Trust. Fed officials have said yield curve control is one tool they are evaluating to maintain the economy amid the COVID-19 pandemic. "Nobody wants to run ahead of the central bank on this topic," Jussaume said. June 2 Tuesday 3:06PM New York / 1906 GMT Price US T BONDS SEP0 177-10/32 -0-14/32 10YR TNotes SEP0 138-220/256 -0-40/25 6 Price Current Net Yield % Change (bps) Three-month bills 0.15 0.1521 -0.003 Six-month bills 0.175 0.1781 0.003 Two-year note 99-234/256 0.1682 0.010 Three-year note 99-194/256 0.2074 0.013 Five-year note 99-168/256 0.3195 0.018 Seven-year note 99-228/256 0.516 0.016 10-year note 99-120/256 0.6803 0.018 30-year bond 94-112/256 1.4806 0.026 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.00 -0.75 spread U.S. 3-year dollar swap 5.50 -0.75 spread U.S. 5-year dollar swap 4.25 -1.00 spread U.S. 10-year dollar swap -1.25 -0.25 spread U.S. 30-year dollar swap -49.25 -0.75 spread (Reporting by Ross Kerber in Boston; editing by Jonathan Oatis and Nick Zieminski)

TREASURIES-Yields steady as traders await more Fed details

02 Jun 2020

By Ross Kerber BOSTON, June 2 U.S. Treasury yields were little changed on Tuesday as investors waited for more guidance from the Federal Reserve and other policymakers on how they might respond to the ongoing economic crisis. The benchmark 10-year yield was up less than a basis point at 0.6689%. The stable session partly reflected traders watching whether the Fed will take steps like "yield curve control," or the setting of yield targets for some Treasuries, said Eric Jussaume, director of fixed income for Cambridge Trust. Fed officials have said yield curve control is one tool they are evaluating as they try to maintain the economy amid the COVID-19 pandemic. "Traders are on the sidelines waiting to see if they actually use it. Nobody wants to run ahead of the central bank on this topic," Jussaume said. World stocks climbed to three-month highs on Tuesday as the global coronavirus recovery effort won out over U.S.-China tensions and the worst civil unrest in the United States in decades. A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on 2- and 10-year Treasury notes, seen as an indicator of economic expectations, was at 51 basis points, about a basis point higher than Monday's close. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up less than a basis point at 0.1604% in morning trading. June 2 Tuesday 9:33AM New York / 1333 GMT Price US T BONDS SEP0 177-17/32 -0-7/32 10YR TNotes SEP0 138-240/256 -0-20/25 6 Price Current Net Yield % Change (bps) Three-month bills 0.1475 0.1496 -0.005 Six-month bills 0.17 0.173 -0.002 Two-year note 99-238/256 0.1604 0.002 Three-year note 99-200/256 0.1994 0.005 Five-year note 99-182/256 0.3084 0.006 Seven-year note 99-240/256 0.5091 0.009 10-year note 99-148/256 0.6689 0.007 30-year bond 94-164/256 1.4719 0.017 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.25 -0.50 spread U.S. 3-year dollar swap 5.50 -0.75 spread U.S. 5-year dollar swap 4.75 -0.50 spread U.S. 10-year dollar swap -1.00 0.00 spread U.S. 30-year dollar swap -49.25 -0.75 spread (Reporting by Ross Kerber in Boston; editing by Jonathan Oatis)

TREASURIES-Longer-dated yields higher as investors watch for supply details

01 Jun 2020

(Updates market activity, adds analyst comment) By Ross Kerber June 1 Investors pushed longer-dated U.S. Treasury yields higher on Monday as they tried to forecast how the government would finance massive efforts to stimulate the economy. The benchmark 10-year yield was up 2.8 basis points at 0.6721% in afternoon trading. Wall Street's major indexes rose as economic data bolstered views of a quick post-pandemic recovery. For Treasuries, analysts said the trading showed investors shrugging off widespread civil unrest in U.S. cities over the weekend and instead focusing on how many 20- and 30-year bonds federal officials may sell. "The market is trying to figure out how the deficits will be funded," said Jim Barnes, director of fixed income at Bryn Mawr Trust. Generally, a greater supply will lead to lower prices and higher yields. At the same time a reluctance by the Federal Reserve to raise interest rates is keeping yields on shorter-term treasuries lower. "The Fed's outlook is known, they haven't been shy about it," said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott. The Fed also has been reducing its bond purchases, which it ramped up to historic highs in March. A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, which is seen as an indicator of economic expectations, was at 51 basis points, about 2 basis points higher than Friday's close. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up less than a basis point at 0.1603%. June 1 Monday 2:06PM New York / 1806 GMT Price US T BONDS SEP0 177-16/32 -0-28/32 10YR TNotes SEP0 138-240/256 -0-32/25 6 Price Current Net Yield % Change (bps) Three-month bills 0.1375 0.1398 -0.002 Six-month bills 0.1625 0.1649 -0.002 Two-year note 99-238/256 0.1603 0.004 Three-year note 99-200/256 0.1994 0.010 Five-year note 99-182/256 0.3084 0.008 Seven-year note 99-240/256 0.5091 0.016 10-year note 99-140/256 0.6721 0.028 30-year bond 94-196/256 1.4666 0.063 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.75 -0.50 spread U.S. 3-year dollar swap 6.00 -1.00 spread U.S. 5-year dollar swap 5.25 0.00 spread U.S. 10-year dollar swap -1.00 -0.50 spread U.S. 30-year dollar swap -48.50 -1.00 spread (Reporting by Ross Kerber in Boston; Editing by Leslie Adler)

TREASURIES-Longer-dated yields higher as investors watch for supply details

01 Jun 2020

By Ross Kerber BOSTON, June 1 Investors pushed longer-dated U.S. Treasury yields higher on Monday as they tried to forecast how the government would finance massive efforts to stimulate the economy. The benchmark 10-year yield was up 3.1 basis points at 0.6754% in morning trading. World stocks hovered near three-month highs and the dollar was flat on Monday as optimism over economies opening up again boosted risk appetite. For Treasuries, analysts said the morning trading showed investors also shrugging off widespread civil unrest in U.S. cities over the weekend and instead trying to parse out just how many 20 and 30-year bonds federal officials may sell. "The market is trying to figure out how the deficits will be funded," said Jim Barnes, director of fixed income at Bryn Mawr Trust. Generally a greater supply will lead to lower prices and higher yields. At the same time a reluctance on the part of the Federal Reserve to raise interest rates is keeping yields on shorter-term treasuries lower, Barnes said. In addition the Fed has been reducing its bond purchases, which it ramped up to historic highs in March. 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 2 basis points higher than Friday's close. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was a basis point higher at 0.1662%. June 1 Monday 9:00AM New York / 1300 GMT Price US T BONDS SEP0 177-12/32 -1 10YR TNotes SEP0 138-232/256 -0-40/25 6 Price Current Net Yield % Change (bps) Three-month bills 0.14 0.1424 0.000 Six-month bills 0.165 0.1674 0.000 Two-year note 99-235/256 0.1662 0.010 Three-year note 99-198/256 0.2021 0.013 Five-year note 99-176/256 0.3131 0.013 Seven-year note 99-232/256 0.5137 0.021 10-year note 99-132/256 0.6754 0.031 30-year bond 95-20/256 1.4533 0.049 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.25 -1.00 spread U.S. 3-year dollar swap 6.00 -1.00 spread U.S. 5-year dollar swap 4.75 -0.50 spread U.S. 10-year dollar swap -1.25 -0.75 spread U.S. 30-year dollar swap -48.25 -0.75 spread (Reporting by Ross Kerber in Boston)

U.S. firms shield CEO pay as pandemic hits workers, investors

28 May 2020

NEW YORK/BOSTON Sonic Automotive Inc, which operates 95 U.S. car dealerships, started laying off and furloughing about a third of its workforce as the coronavirus pandemic crushed its sales. Then it changed its executives' pay packages - handing them a multimillion-dollar windfall.

Largest asset manager wins backing for jumbo board

21 May 2020

BOSTON BlackRock Inc said all of its 16 director nominees received strong investor support at its annual meeting on Thursday, at which Chief Executive Laurence Fink defended the size of the company's large board.

UPDATE 1-Largest asset manager wins backing for jumbo board

21 May 2020

BOSTON, May 21 BlackRock Inc said all of its 16 director nominees received strong investor support at its annual meeting on Thursday, at which Chief Executive Laurence Fink defended the size of the company's large board.

UPDATE 1-Northern Trust shutting fund; an outlier or sign of future risk?

21 May 2020

BOSTON, May 20 Northern Trust Corp's decision to liquidate a $1.8-billion prime money market fund was seen as an outlier event by industry analysts on Wednesday, but one that could portend more problems depending on how the economy fares.

Northern Trust shutting fund in latest prime money market stress

20 May 2020

BOSTON Northern Trust Corp said it will liquidate a $1.8 billion prime money market fund, one of a number to come under stress this year as investors withdraw cash.

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