TREASURIES-Longer-dated yields higher as investors watch for supply details

 (Updates market activity, adds analyst comment)
    By Ross Kerber
    June 1 (Reuters) - Investors pushed longer-dated U.S.
Treasury yields higher on Monday as they tried to forecast how
the government would finance massive efforts to stimulate the
economy.
    The benchmark 10-year yield was up 2.8 basis
points at 0.6721% in afternoon trading.
    Wall Street's major indexes rose as economic data bolstered
views of a quick post-pandemic recovery.
    For Treasuries, analysts said the trading showed investors 
shrugging off widespread civil unrest in U.S. cities over the
weekend and instead focusing on how many 20- and 30-year bonds
federal officials may sell. 
    "The market is trying to figure out how the deficits will be
funded," said Jim Barnes, director of fixed income at Bryn Mawr
Trust.
    Generally, a greater supply will lead to lower prices and
higher yields. At the same time a reluctance by the Federal
Reserve to raise interest rates is keeping yields on
shorter-term treasuries lower.
    "The Fed's outlook is known, they haven't been shy about
it," said Guy LeBas, chief fixed-income strategist at Janney
Montgomery Scott. 
    The Fed also has been reducing its bond purchases, which it
ramped up to historic highs in March.
    A closely watched part of the U.S. Treasury yield curve
measuring the gap between yields on two- and 10-year Treasury
notes, which is seen as an indicator of economic
expectations, was at 51 basis points, about 2 basis points
higher than Friday's close.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was up less than
a basis point at 0.1603%.
    
  June 1 Monday 2:06PM New York / 1806 GMT
                               Price                  
 US T BONDS SEP0               177-16/32    -0-28/32  
 10YR TNotes SEP0              138-240/256  -0-32/25  
                                            6         
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.1375       0.1398    -0.002
 Six-month bills               0.1625       0.1649    -0.002
 Two-year note                 99-238/256   0.1603    0.004
 Three-year note               99-200/256   0.1994    0.010
 Five-year note                99-182/256   0.3084    0.008
 Seven-year note               99-240/256   0.5091    0.016
 10-year note                  99-140/256   0.6721    0.028
 30-year bond                  94-196/256   1.4666    0.063
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         8.75        -0.50    
 spread                                               
 U.S. 3-year dollar swap         6.00        -1.00    
 spread                                               
 U.S. 5-year dollar swap         5.25         0.00    
 spread                                               
 U.S. 10-year dollar swap       -1.00        -0.50    
 spread                                               
 U.S. 30-year dollar swap      -48.50        -1.00    
 spread                                               
 
 (Reporting by Ross Kerber in Boston; Editing by Leslie Adler)
  

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