TREASURIES-U.S. yields rise with eyes on Fed taper timeline

·3 min read

By Rodrigo Campos NEW YORK, Sept 17 (Reuters) - U.S. government bond yields edged up on Friday, with the 10-year yield touching a two-month high, as traders look ahead to a busy week of central bank meetings including a key one at the Federal Reserve. The 10-year yield briefly touched 1.3855%, its highest level since July 14. Investors hope to get more clarity from the Fed regarding the schedule for slowing down its asset purchases, which will also give a rough timeline for when the next rate increase could come. The Fed is expected to tie any policy decision to U.S. job growth in September and beyond. Other than the Fed's two-day meeting ending on Wednesday, the central banks of China, Japan, Sweden, Brazil, the United Kingdom and Turkey are scheduled to meet next week to discuss monetary policy. "My sense is that nobody really wants to be particularly aggressively positioned" going in to next week, said Guy LeBas, chief fixed income strategist at Janney. He said the Treasury market was "slowly bleeding out the CPI rally" that took yields to three-week lows earlier in the week. The yield on 10-year Treasury notes was up 3.9 basis points at 1.3702%. The yield on the 30-year Treasury bond was up 3.4 basis points at 1.9146%. 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 114.2 basis points. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 0.9 basis point at 0.226%. The U.S. government will auction $24 billion in 20-year bonds on Sept. 21 and $14 billion 10-year TIPS on Sept. 23 in reopenings that will both settle on Sept. 30. September 17 Friday 11:59AM New York / 1559 GMT Price Current Net Yield % Change (bps) Three-month bills 0.035 0.0355 0.001 Six-month bills 0.045 0.0456 0.000 Two-year note 99-206/256 0.2257 0.009 Three-year note 99-184/256 0.4699 0.013 Five-year note 99-114/256 0.8648 0.031 Seven-year note 99-188/256 1.1649 0.035 10-year note 98-228/256 1.3702 0.039 20-year bond 98-40/256 1.8612 0.041 30-year bond 101-240/256 1.9146 0.034 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 10.75 0.00 spread U.S. 3-year dollar swap 12.25 0.00 spread U.S. 5-year dollar swap 10.00 -0.25 spread U.S. 10-year dollar swap 3.75 0.25 spread U.S. 30-year dollar swap -23.25 0.25 spread (Reporting by Rodrigo Campos in New York Editing by Matthew Lewis)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting