(Adds auctions, updates prices) By Karen Brettell NEW YORK, June 18 (Reuters) - U.S. Treasury yields fell on Thursday after cases of the novel coronavirus rose in several U.S. states, raising concerns that the economy may not bounce back as quickly as hoped. Several U.S. states reported a surge in new coronavirus infections on Wednesday and the daily count of infections also hit a new benchmark in California and Texas. Around 400 workers also tested positive for the virus at an abattoir in northern Germany, while a Chinese medical expert said Beijing had brought its recent outbreak under control. “The focus right now is what’s going on with the virus,” said Zach Griffiths, an interest rate strategist at Wells Fargo in Charlotte, North Carolina. “Markets are trying to balance some more positive economic data with virus outbreaks.” Benchmark 10-year Treasury yields dipped three basis points to 0.704%. They rose as high as 0.959% on June 5 after data showed that employers unexpectedly added jobs in May, but have fallen since as optimism over the speed of the economic recovery has ebbed. The yield curve between two-year and 10-year notes flattened three basis points to 51 basis points. Data on Thursday showed that initial claims for state unemployment benefits totaled a seasonally adjusted 1.508 million for the week ended June 13, down from 1.566 million in the prior week, and the 11th straight weekly drop after reaching a record 6.867 million in late March. Factory activity in the U.S. mid-Atlantic region rebounded sharply in June, offering hope that the manufacturing sector was regaining its footing. The Treasury will sell $15 billion in five-year Treasury Inflation-Protected Securities (TIPS) on Thursday. It will also sell $134 billion in two-year, five-year and seven-year notes next week. June 18 Thursday 11:01AM New York / 1501 GMT Price US T BONDS SEP0 177-2/32 0-28/32 10YR TNotes SEP0 138-200/256 0-48/256 Price Current Net Yield % Change (bps) Three-month bills 0.155 0.1572 -0.021 Six-month bills 0.17 0.1725 -0.008 Two-year note 99-221/256 0.1953 -0.002 Three-year note 100-22/256 0.2212 -0.005 Five-year note 99-156/256 0.3296 -0.009 Seven-year note 99-204/256 0.5298 -0.020 10-year note 99-64/256 0.7035 -0.030 20-year bond 97-236/256 1.2432 -0.044 30-year bond 94-112/256 1.4809 -0.042 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 5.75 -0.75 spread U.S. 3-year dollar swap 4.00 -0.25 spread U.S. 5-year dollar swap 3.25 -0.25 spread U.S. 10-year dollar swap -3.00 0.00 spread U.S. 30-year dollar swap -50.75 0.25 spread (Reporting by Karen Brettell; Editing by Bernadette Baum)
Our Standards: The Thomson Reuters Trust Principles.