Yields of the one-month Treasury bill fell more than 20 basis points to 3.79%, bringing it back below 4% after spiking higher Tuesday. The security, which is often seen as a proxy for cash, could be among the most affected by a continued standoff over raising the U.S. borrowing limit.
The U.S. House of Representatives may vote on a bill that would sharply cut spending in exchange for a short-term increase in the debt ceiling on Wednesday.
The yield on 10-year Treasury notes was down 0.2 basis point to 3.396%, while the yield on the 30-year Treasury bond was down 0.1 basis point to 3.651%.
Bond yields move in the opposite direction of prices.
New orders for key U.S.-manufactured capital goods fell 0.4% in March., more than the 0.1% expected by economists polled by Reuters, while data for February was revised downward to show a 0.7% decline, rather than the previous estimate of a 0.1% decline, the Commerce Department said.
U.S. stocks broadly rose Wednesday following strong forecasts from bellwethers including Microsoft Corp and Boeing Co .
"The economy still has residual strength despite a raft of reports indicating an advancing slowdown," said Quincy Krosby, Chief Global Strategist for LPL Financial.
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 -49.9 basis points.
April 26 Wednesday 9:44AM New York / 1344 GMT
Price Current Net
Yield % Change
(bps)
Three-month bills 4.9775 5.1109 -0.009
Six-month bills 4.77 4.9693 -0.006
Two-year note 99-247/256 3.8934 -0.003
Three-year note 100-82/256 3.6348 -0.005
Five-year note 100-210/256 3.4421 -0.002
Seven-year note 101-68/256 3.4179 -0.003
10-year note 100-216/256 3.3977 0.000
20-year bond 101-120/256 3.7688 0.001
30-year bond 99-136/256 3.6507 -0.001
DOLLAR SWAP SPREADS
Last (bps) Net
Change
(bps)
U.S. 2-year dollar swap 31.50 6.00
spread
U.S. 3-year dollar swap 18.25 1.00
spread
U.S. 5-year dollar swap 7.00 0.00
spread
U.S. 10-year dollar swap -0.75 -0.25
spread
U.S. 30-year dollar swap -42.00 0.00
spread
(Reporting by David Randall; editing by Jonathan Oatis)
Messaging: david.randall.thomsonreuters.com@reuters.net))