U.S. Markets closed
  • S&P 500

    4,136.48
    -43.28 (-1.04%)
     
  • Dow 30

    33,926.01
    -127.93 (-0.38%)
     
  • Nasdaq

    12,006.96
    -193.86 (-1.59%)
     
  • Russell 2000

    1,985.53
    -15.69 (-0.78%)
     
  • Crude Oil

    73.23
    -2.65 (-3.49%)
     
  • Gold

    1,877.70
    -53.10 (-2.75%)
     
  • Silver

    22.40
    -1.22 (-5.17%)
     
  • EUR/USD

    1.0797
    -0.0114 (-1.0473%)
     
  • 10-Yr Bond

    3.5320
    +0.1360 (+4.00%)
     
  • Vix

    18.33
    -0.40 (-2.14%)
     
  • GBP/USD

    1.2056
    -0.0173 (-1.4106%)
     
  • USD/JPY

    131.1500
    +2.5460 (+1.9797%)
     
  • BTC-USD

    23,348.48
    -184.01 (-0.78%)
     
  • CMC Crypto 200

    535.42
    -1.43 (-0.27%)
     
  • FTSE 100

    7,901.80
    +81.64 (+1.04%)
     
  • Nikkei 225

    27,509.46
    +107.41 (+0.39%)
     

TREASURIES-U.S. 10-year Treasury yield hits 2007 high before easing on report

(Adds comment, fresh 10-year high, prices) By Herbert Lash NEW YORK, Oct 21 (Reuters) - Yields on 10-year U.S. Treasuries hit a fresh 15-year high on Friday but later eased on a report suggesting the Federal Reserve is likely to debate in two weeks whether to signal plans for a smaller interest rate hike in December. The market is pricing in a 75 basis point hike when Fed policymakers meet Nov. 1-2 but is divided on whether they hike another 75 bps in December or reduce the pace of their tightening to 50 bps. The yield on the benchmark 10-year Treasury hit 4.3375% early in the session, the highest since Nov. 1, 2007. The yield was last up 1.8 basis points to 4.244 %. The market is torn between those who hope the worst will soon be in the past and those who believe the Fed will tighten policy further at a time when the strong dollar is increasing global tensions, said Andrzej Skiba, head of the BlueBay U.S. Fixed Income team at RBC Global Asset Management. Fed officials are entertaining a 50 bps rate hike in December, and they would want to prepare investors for such a decision in the weeks after the Federal Open Market Committee meeting in November, the Wall Street Journal said on Friday. "The article indicated there are some FOMC members who would be keen on slowing down the pace of increases the further we go into restrictive territory," said Skiba, who doubted the date or economic conditions will permit such a move at the moment. "We're not sure that relatively strong economic data and elevated inflation will allow them to do so in the near term." The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 6.9 basis points at 4.541 %. The gap between yields on two- and 10-year Treasury notes, seen as a recession harbinger, was at -29.7 basis points. The yield on the 30-year Treasury bond was up 11.1 basis points to 4.326 %. The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) was last at 2.686 %. The 10-year TIPS breakeven rate was last at 2.542 %, indicating the market sees inflation averaging 2.5% a year for the next decade. The U.S. dollar 5 years forward inflation-linked swap , seen by some as a better gauge of inflation expectations due to possible distortions caused by the Fed's quantitative easing, was last at 2.575 %. Oct. 21 Friday 10:44 AM New York / 1444 GMT Price Current Net Yield % Change (bps) Three-month bills 3.9025 3.9944 -0.007 Six-month bills 4.325 4.4809 -0.039 Two-year note 99-117/256 4.545 -0.065 Three-year note 99-34/256 4.5646 -0.090 Five-year note 98-212/256 4.3912 -0.059 Seven-year note 97-64/256 4.3381 -0.018 10-year note 88-12/256 4.2526 0.027 20-year bond 84-76/256 4.5901 0.103 30-year bond 77-204/256 4.3335 0.118 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap spread 37.50 -1.50 U.S. 3-year dollar swap spread 11.50 0.00 U.S. 5-year dollar swap spread 2.75 -0.50 U.S. 10-year dollar swap spread 0.50 -0.75 U.S. 30-year dollar swap spread -47.25 -1.50 (Reporting by Herbert Lash; Additional reporting by Harry Robertson; Editing by Alun John and Nick Zieminski)