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TREASURIES-Yields mixed as market awaits election results, jobs data

 (Recasts, updates yields, adds analyst comment and Fed meeting
statement)
    By Karen Pierog
    CHICAGO, Nov 5 (Reuters) - U.S. Treasury yields were mixed
on Thursday as national election results remained uncertain and
investors awaited Friday's October employment report.
    Longer-dated yields bounced up from three-week lows reached
earlier in the session.
    The benchmark 10-year yield, which touched its
lowest since mid-October at 0.718%, was last up less than a
basis point at 0.7763%. The 30-year bond yield also
hit a three-week low of 1.48% and was last down less than a
basis point at 1.5424%.
    "The market's really adrift here trying to figure out what
to focus on next," said Gennadiy Goldberg, an interest rate
strategist at TD Securities in New York, pointing to
still-incomplete results from Tuesday's election, rising
coronavirus cases, and Friday's release of jobs data.
    Democrat Joe Biden inched closer to an election win over
Republican President Donald Trump, but his party is falling
short of expectations in congressional elections.
Still, potential runoffs in Georgia could determine control of
the Senate, where Republicans are in the majority.
    Kathy Jones, chief fixed income strategist at the Schwab
Center for Financial Research in New York, said a divided
national government would mean a smaller stimulus plan to aid
the virus-battered economy.
    "There'll be less spending and less fiscal stimulus and that
means the (U.S. Federal Reserve) has to continue to keep rates
lower for longer and we'll get slower growth and less
inflation," she said.
    The Fed wrapped up its two-day policy meeting with no
surprises, saying the central bank would maintain its loose
monetary policy and pledging to do what it can to sustain an
economic recovery.
    Ahead of October jobs data due out on Friday, the U.S. Labor
Department reported initial claims for state unemployment
benefits totaled a seasonally adjusted 751,000 for the week
ended Oct. 31, compared with 758,000 in the prior week.
Economists polled by Reuters had forecast 732,000 applications
in the latest week.
    A closely watched part of the U.S. Treasury yield curve
measuring the gap between yields on two- and 10-year Treasury
notes flattened to mid-October levels at 56.90
basis points earlier in the session. It was last up less than a
basis point at 62.20 basis points. It had widened to as much as
77 basis points on Wednesday.     
November 5 Thursday 3:52PM New York / 2152 GMT
                               Price Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.09         0.0913    -0.003
 Six-month bills               0.0975       0.0989    -0.002
 Two-year note                 99-244/256   0.1487    0.004
 Three-year note               99-208/256   0.189     0.013
 Five-year note                99-150/256   0.3339    0.011
 Seven-year note               99-152/256   0.5594    0.011
 10-year note                  98-148/256   0.7763    0.008
 20-year bond                  96-188/256   1.313     -0.003
 30-year bond                  96-4/256     1.5424    -0.007
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         8.25        -0.25    
 spread                                               
 U.S. 3-year dollar swap         7.50        -0.75    
 spread                                               
 U.S. 5-year dollar swap         6.50         0.00    
 spread                                               
 U.S. 10-year dollar swap        2.50         0.25    
 spread                                               
 U.S. 30-year dollar swap      -32.75         0.25    
 spread (Reporting by Karen Pierog in Chicago; additional reporting by
Dhara Ranasinghe and Suajata Rao in London; Editing by Dan
Grebler and Richard Chang)
  
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