TREASURIES-Yields head higher as coronavirus slowdown hopes lift stocks

    By Karen Pierog
    CHICAGO, April 6 - U.S. Treasury yields rose on Monday as
stocks opened strong on hopes that the coronavirus health crisis
may be slowing down in some parts of the United States.
    The yield on the benchmark U.S. 10-year note was
last up 7 basis points at 0.6588%.
    Lou Brien, a strategist at DRW Trading in Chicago, said Wall
Street's upward trajectory was "the first and last reason why
Treasuries are lower in price and higher in yield this morning."
    While the nation has been warned by federal officials that a
"peak week" for death is approaching, Brien said
stocks may be anticipating that the crisis' duration may be
shortening up a little bit. 
   On Sunday, New York, the country's biggest hot spot, reported
 that for the first time in a week virus-related deaths in the
state had fallen slightly from the day before.
  On Friday, the bond market largely shrugged off the March
employment report despite its magnitude with just over 700,000
jobs lost as a result of the wide-spread closure of
non-essential businesses and services.
     "The jobs data that we got on Friday was bad to horrible
and that is just the appetizer to what will probably come in
April," Brien said. 
    The 30-year Treasury yield rose 6.9 basis points
to 1.2854%.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was at 0.2543%,
up 4.1 basis points.
    On the repurchase agreement (repo) operation front, the New
York Federal Reserve said it accepted all $6.3 billion of bids
submitted in a 28-day operation and $2.7 billion of bids in an
overnight operation.
    
    April 6 Monday 8:45AM New York / 1345 GMT
                                                      
                                                      
                                                      
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.12         0.122     0.016
 Six-month bills               0.1725       0.175     0.025
 Two-year note                 100-61/256   0.2543    0.041
 Three-year note               100-128/256  0.3288    0.053
 Five-year note                100-94/256   0.4254    0.058
 Seven-year note               100-98/256   0.569     0.067
 10-year note                  108-4/256    0.6588    0.070
 30-year bond                  117-172/256  1.2854    0.069
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap        22.00        -2.50    
 spread                                               
 U.S. 3-year dollar swap        13.00        -2.50    
 spread                                               
 U.S. 5-year dollar swap        11.00        -1.00    
 spread                                               
 U.S. 10-year dollar swap        3.50        -2.00    
 spread                                               
 U.S. 30-year dollar swap      -44.50        -1.75    
 spread                                               
 

 (By Karen Pierog in Chicago
Editing by Nick Zieminski)
  

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