TREASURIES-Yields rise on slightly lower weekly jobless claims

George T. Taft

Jan 21 (Reuters)U.S. Treasury yields were mostly higher and the yield curve steepened on Thursday after data showed new claims for jobless benefits declined modestly last week.

The benchmark 10-year yield US10YT=RR was last up 2.4 basis points at 1.1143%.

A closely watched part of the yield curve measuring the gap between yields on two- and 10-year Treasury notes US2US10=RR was last 3.58 basis points higher at 98.19 basis points.

Initial claims for state unemployment benefits totaled a seasonally adjusted 900,000 for the week ended Jan. 16, compared to 926,000 in the prior week, the Labor Department reported on Thursday. Economists polled by Reuters had forecast 910,000 applications in the latest week.

Having flat or slightly improved data for the second week of January “helps argue that the trend is not towards rising claims,” said Guy LeBas, chief fixed income strategist at Janney Capital Management in Philadelphia.

“There was a substantial contingent in the macro-fundamental camp that was concerned about further deterioration in the U.S. labor markets and at least the numbers from today suggest it’s not happening, at least not right now,” he said.

On the supply front, an auction of $15 billion of 10-year Treasury Inflation-Protected Securities (TIPS) was set for later on Thursday.

The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations, was last down less than a basis point at 0.129%.

January 21 Thursday 9:54AM New York / 1554 GMT

Price

Current Yield %

Net Change (bps)

Three-month bills US3MT=RR

0.08

0.0811

0.000

Six-month bills US6MT=RR

0.09

0.0913

0.000

Two-year note US2YT=RR

99-254/256

0.129

-0.002

Three-year note US3YT=RR

99-200/256

0.1986

0.003

Five-year note US5YT=RR

99-152/256

0.4583

0.009

Seven-year note US7YT=RR

98-232/256

0.7873

0.014

10-year note US10YT=RR

97-200/256

1.1143

0.024

20-year bond US20YT=RR

94-240/256

1.6763

0.031

30-year bond US30YT=RR

94-84/256

1.8742

0.032

DOLLAR SWAP SPREADS

Last (bps)

Net Change (bps)

U.S. 2-year dollar swap spread

7.25

-0.25

U.S. 3-year dollar swap spread

7.25

0.00

U.S. 5-year dollar swap spread

7.75

0.25

U.S. 10-year dollar swap spread

0.50

0.50

U.S. 30-year dollar swap spread

-26.25

0.00

(Reporting by Herbert Lash in New York and Karen Pierog in Chicago; editing by Chizu Nomiyama)

(([email protected]; +1 312 408 8647; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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