U.S. Markets open in 8 hrs 18 mins
  • S&P Futures

    3,257.25
    +19.25 (+0.59%)
     
  • Dow Futures

    26,877.00
    +162.00 (+0.61%)
     
  • Nasdaq Futures

    10,954.50
    +62.75 (+0.58%)
     
  • Russell 2000 Futures

    1,461.50
    +14.50 (+1.00%)
     
  • Crude Oil

    40.58
    +0.27 (+0.67%)
     
  • Gold

    1,875.70
    -1.20 (-0.06%)
     
  • Silver

    23.38
    +0.18 (+0.77%)
     
  • EUR/USD

    1.1671
    -0.0004 (-0.0350%)
     
  • 10-Yr Bond

    0.6660
    0.0000 (0.00%)
     
  • Vix

    28.51
    -0.07 (-0.24%)
     
  • GBP/USD

    1.2756
    +0.0004 (+0.0332%)
     
  • BTC-USD

    10,682.97
    -77.62 (-0.72%)
     
  • CMC Crypto 200

    217.46
    +8.52 (+4.08%)
     
  • FTSE 100

    5,822.78
    -76.48 (-1.30%)
     
  • Nikkei 225

    23,208.95
    +121.13 (+0.52%)
     

TREASURIES-Yield curve flatter as investors doubt inflation goal

Ross Kerber

By Ross Kerber Sept 17 (Reuters) - U.S. Treasury yields dropped and the yield curve flattened on Thursday as investors grew skeptical of Federal Reserve efforts to stimulate economic growth and took stock of a report showing persistently high jobless claims. The benchmark 10-year yield was down 2.9 basis points at 0.6576% in morning trading after touching as low as 0.646%, the lowest since Sept. 4. The trading marked a turnaround from Wednesday afternoon, when investors seemed to accept Fed actions could bring about more inflation. But those expectations changed as government bondholders digested the Fed's message overnight, said Andrew Richman, senior fixed income analyst for Sterling Capital Management. "It could be a reversal of yesterday's sentiment that yes, the Fed could let inflation run high, but still there is worry that we never hit that inflation target" of 2% sought by the central bank, Richman said. Also helping send down yields on a risk-off morning was a new Labor Department report showing the number of Americans filing new claims for unemployment benefits fell last week, but remained at an extremely high level as the jobs recovery shifts into low gear and consumer spending cools amid fading fiscal stimulus. Wall Street's main indexes opened lower after the jobs report. 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 53 basis points, about 3 basis points lower than Wednesday's close but still above its level of 33 basis points reached on July 24. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down a basis point at 0.129% % in morning trading. The yield on the three-month U.S. Treasury bill was at 0.0938%, down 1.8 basis points and the first time the measure was below 0.1% since Aug. 27. September 17 Thursday 9:25AM New York / 1325 GMT Price Current Net Yield % Change (bps) Three-month bills 0.0925 0.0938 -0.018 Six-month bills 0.1125 0.1141 -0.003 Two-year note 99-254/256 0.129 -0.010 Three-year note 99-240/256 0.1459 -0.016 Five-year note 99-248/256 0.2563 -0.018 Seven-year note 100-102/256 0.4417 -0.023 10-year note 99-176/256 0.6576 -0.029 20-year bond 98-236/256 1.1859 -0.041 30-year bond 99-64/256 1.4058 -0.041 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 7.75 0.00 spread U.S. 3-year dollar swap 7.00 0.25 spread U.S. 5-year dollar swap 6.00 0.75 spread U.S. 10-year dollar swap 0.50 0.50 spread U.S. 30-year dollar swap -37.00 0.75 spread (Reporting by Ross Kerber in Boston; editing by Jonathan Oatis)