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Treasury yields inch toward highs for year on strong economic data

Kitco News

NEW YORK, Nov 24 (Reuters) - U.S. Treasury yields continued to inch toward their highs for the year after data released Wednesday suggested the job market and consumer spending continue to improve.

The number of Americans filing new claims for unemployment benefits fell to their lowest since 1969 last week, the Labor Department said. At the same time, personal consumption rose 1.7% - slightly more than the estimated 1.6% - in the third quarter. read more

The yield on benchmark 10-year Treasury notes was up 2.5 basis points at 1.690%, near its high for the year of 1.74% reached in March. The yield on the 30-year Treasury bond was up 1.1 basis points to 2.034%.

Signs of strength in the economy will likely reinforce investors' belief that inflation will accelerate and weigh on Treasury prices, said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets.

"The market has been and continues to lean bearishly duration, which suggests that a collective shift back closer to neutral would create a meaningful round of buying in Treasuries," he said.

The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 3.6 basis points at 0.644%.

The yield curve flattened, with spreads between 5- and 30-year Treasuries tightening near their lowest levels since March 2020.

November 24 Wednesday 9:17AM New York / 1417 GMT

Price
Current Yield %
Net Change (bps)
Three-month bills
0.055
0.0558
0.005
Six-month bills
0.0825
0.0837
0.008
Two-year note
99-186/256
0.6378
0.030
Three-year note
99-96/256
0.964
0.027
Five-year note
99-116/256
1.3635
0.030
Seven-year note
99-76/256
1.6066
0.020
10-year note
97-40/256
1.6861
0.021
20-year bond
98-144/256
2.0884
0.016
30-year bond
96-128/256
2.0315
0.009
DOLLAR SWAP SPREADS
Last (bps)
Net Change (bps)
U.S. 2-year dollar swap spread
23.50
1.00
U.S. 3-year dollar swap spread
22.50
1.25
U.S. 5-year dollar swap spread
10.00
0.00
U.S. 10-year dollar swap spread
5.00
-0.50
U.S. 30-year dollar swap spread
-17.75
-0.50
Reporting by David Randall; Editing by Bernadette Baum
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