The yield on 10-year Treasury notes was down 5.7 basis points to 3.515%, while the yield on the 30-year Treasury bond was down 5 basis points to 3.728%.
Yields have dipped since mid-April as investors prepare for the Federal Reserve's next policy meeting, scheduled for May 3, in which the central bank is expected to increase its benchmark rate by 25 basis points to a range of 5% to 5.25%. Fed members are now in a so-called quiet period before the meeting, leaving markets with fewer clues into their views on the direction of the economy. Yet three-month bills, which would be more directly affected by a standoff over raising the debt ceiling, were flat at 5.11%. The House is expected to vote on a Republican-led debt and spending bill this week.
"People are focusing increasingly week to week on the summer and the debt ceiling deadline, and that is increasingly impacting what could be some idiosyncratic moves in the Treasury market," said Fran Rodilosso, Head of Fixed Income ETF Portfolio Management at VanEck. "There's a growing sense that there's not a lot of common ground this time." 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 -63.5 basis points.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 4.2 basis points at 4.148%.
April 24 Monday 10:40AM New York / 1440 GMT
Price Current Net
Yield % Change
(bps)
Three-month bills 4.98 5.11 -0.007
Six-month bills 4.86 5.062 -0.001
Two-year note 99-125/256 4.1521 -0.038
Three-year note 99-186/256 3.8479 -0.048
Five-year note 100-14/256 3.6124 -0.053
Seven-year note 100-90/256 3.567 -0.053
10-year note 99-208/256 3.5223 -0.050
20-year bond 100-56/256 3.8588 -0.048
30-year bond 98-16/256 3.7331 -0.045
DOLLAR SWAP SPREADS
Last (bps) Net
Change
(bps)
U.S. 2-year dollar swap 27.25 0.25
spread
U.S. 3-year dollar swap 18.00 0.75
spread
U.S. 5-year dollar swap 7.50 0.00
spread
U.S. 10-year dollar swap -0.50 -0.25
spread
U.S. 30-year dollar swap -41.25 -0.50
spread
(Reporting by David Randall; editing by Jonathan Oatis, Kirsten Donovan)
Messaging: david.randall.thomsonreuters.com@reuters.net))