TREASURIES-Yields little changed as investors look to upcoming auctions

  • 6/7/2021
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(Updates with market activity, details on Fed program) By Ross Kerber June 7 (Reuters) - Traders left U.S. Treasury yields little changed on Monday as they waited on the results of upcoming government bond auctions, while a Federal Reserve reverse repurchase facility took in a record amount of money. The benchmark 10-year yield was up less than a basis point at 1.567% in afternoon trading on Monday. Major U.S. equity indexes dipped as investors weighed a deal by the world"s richest nations on a global minimum corporate tax. "There"s no reason to break out of the range right now," said Cantor Fitzgerald analyst Justin Lederer. He said he expects few factors could move Treasury prices much before a meeting of the U.S Federal Reserve next week. The U.S. Treasury Department is scheduled to auction about $120 billion of notes and bonds starting on Tuesday, the results of which will show investor appetite for three-year, 10-year and 30-year government debt. The amount of money flowing into the U.S. Federal Reserve"s reverse repurchase facility hit an all-time high of $486.1 billion on Monday, about a billion dollars more than the previous record on May 27. The high amounts put pressure on short-term interest rates, trading just above zero. Jim Barnes director of fixed income for Bryn Mawr Trust, said the records reflect government money funds parking cash even without an interest payment. 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 141 basis points, less than a basis point 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 0.1527%. June 7 Monday 2:14 PM New York / 1814 GMT Price Current Net Yield % Change (bps) Three-month bills 0.025 0.0253 0.005 Six-month bills 0.04 0.0406 0.003 Two-year note 99-242/256 0.1527 0.004 Three-year note 99-210/256 0.3116 0.009 Five-year note 99-204/256 0.7917 0.008 Seven-year note 100-22/256 1.2371 0.007 10-year note 100-136/256 1.567 0.007 20-year bond 101-100/256 2.1637 0.009 30-year bond 102-204/256 2.2461 0.007 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 7.25 -0.25 spread U.S. 3-year dollar swap 11.25 -0.25 spread U.S. 5-year dollar swap 7.00 -0.50 spread U.S. 10-year dollar swap -3.25 -0.25 spread U.S. 30-year dollar swap -29.25 -0.25 spread (Reporting by Ross Kerber in Boston Editing by Chris Reese) Our Standards: The Thomson Reuters Trust Principles.

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