U.S. Markets closed

TREASURIES-Yields decline on virus concerns and consumer data

By Ross Kerber

By Ross Kerber BOSTON, Feb 14 (Reuters) - U.S. Treasury yields declined on Friday as investors bought safe-haven government debt ahead of a long holiday weekend after soft retail sales data and on continuing caution about the coronavirus epidemic in China. The benchmark 10-year yield was down 3 basis points in morning trading at 1.5866%. James Barnes, director of fixed income at Bryn Mawr Trust, cited concerns about the coronavirus in China and a report that core U.S. retail sales were unchanged for January. Traders also reduced risk in their portfolios heading into the weekend, wary of what news might emerge about the virus, similar to trading on previous Fridays. U.S. markets are closed on Monday for Presidents Day. "Traders are more comfortable going into the weekend" with less risk, he said, adding that many believe "There's more risk to the downside than to the upside." U.S. Commerce Department data showed U.S. consumer spending appeared to have slowed further in January, with sales at clothing stores declining by the most since 2009, which could raise concerns about the economy's ability to continue its moderate expansion. Commerce said retail sales excluding automobiles, gasoline, building materials and food services were unchanged last month, weaker than the 0.3 percent ries economists had predicted in a Reuters poll. Data for December was revised down. China's National Health Commission said it had recorded 121 new deaths and 5,090 new coronavirus cases on the mainland on Thursday, taking the total number of infected to 63,851. Some 55,748 people are being treated, while 1,380 have died of the virus. Policymakers pledged to do more to stimulate economies hit by the virus, helping Asian stock markets edge higher. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 2 basis points at 1.4217% in morning trading. February 14 Friday 9:21AM New York / 1421 GMT Price Current Net Yield % Change (bps) Three-month bills 1.545 1.5766 -0.010 Six-month bills 1.515 1.5518 -0.008 Two-year note 99-233/256 1.4217 -0.020 Three-year note 99-240/256 1.3964 -0.022 Five-year note 99-208/256 1.4143 -0.026 Seven-year note 99-244/256 1.5071 -0.031 10-year note 99-52/256 1.5866 -0.030 30-year bond 99-44/256 2.037 -0.041 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 2.50 -0.50 spread U.S. 3-year dollar swap 1.00 -0.50 spread U.S. 5-year dollar swap -0.75 -0.50 spread U.S. 10-year dollar swap -5.75 -0.50 spread U.S. 30-year dollar swap -32.75 0.00 spread (Reporting by Ross Kerber; Editing by David Gregorio)