TREASURIES-Yields slip after Powell comments, no hints on taper timeline

  • 8/27/2021
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(Recasts after comments from Fed"s Powell, updates prices) By Karen Brettell NEW YORK, Aug 27 (Reuters) - U.S. Treasury yields dipped in choppy trading after Federal Reserve Chair Jerome Powell gave no new hints on when the U.S. central bank is likely to begin paring bond purchases in a highly anticipated speech on Friday. The U.S. economy continues to make progress toward the Federal Reserve"s benchmarks for reducing its pandemic-era emergency programs, Powell, in remarks that defended the view that current high inflation will likely pass and stopped short of signaling the timing for any policy shift. Powell made the comments virtually at the Fed’s annual Jackson Hole, Wyoming, economic symposium. Minutes from the Fed"s July meeting released last week showed that the bulk of the bank"s policy-setting committee expect the Fed will start trimming its bond-buying program later this year, though consumer sentiment and economic data have weakened since the July meeting. Benchmark 10-year notes were last yielding 1.329%, down from around 1.341% before Powell"s comments were released. The yields briefly reached a two-week high of 1.375% on Thursday. Trading this week has been choppy in light liquidity with many traders and investors out for August summer vacations. August 27 Friday 10:11AM New York / 1411 GMT Price Current Net Yield % Change (bps) Three-month bills 0.0525 0.0532 0.000 Six-month bills 0.05 0.0507 0.000 Two-year note 99-204/256 0.2268 -0.012 Three-year note 99-206/256 0.4415 -0.010 Five-year note 99-162/256 0.8251 -0.018 Seven-year note 100-4/256 1.1227 -0.013 10-year note 99-64/256 1.3306 -0.013 20-year bond 98-44/256 1.8601 -0.010 30-year bond 101-148/256 1.9304 -0.011 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 8.75 0.00 spread U.S. 3-year dollar swap 11.75 0.50 spread U.S. 5-year dollar swap 8.00 0.25 spread U.S. 10-year dollar swap 1.25 0.25 spread U.S. 30-year dollar swap -27.25 0.50 spread (Reporting by Karen Brettell; Editing by Steve Orlofsky and Jonathan Oatis) Our Standards: The Thomson Reuters Trust Principles.

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