for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

TREASURIES-Longer-term yields rise as investors watch Washington

 (Updates with market activity)
    By Ross Kerber
    Dec 15 (Reuters) - Longer-term U.S. Treasury yields were
higher on Tuesday as U.S. central bank officials began a two-day
meeting and investors looked for progress in congressional
spending negotiations in Washington.
    The benchmark 10-year yield was up 2.7 basis
points in afternoon trading at 0.9179%.
    In its final policy meeting of the year this week, the U.S.
Federal Reserve is expected to keep its key overnight interest
rate pinned near zero and to signal it will stay there for years
to come. Many analysts also expect new guidance on how long the
Fed will keep up its massive bond-buying program.
    "What the market is looking for is more transparency on the
Fed's future direction," said Jim Barnes, director of fixed
income at Bryn Mawr Trust. Currently, he said, investors lack
much understanding of what would cause the Fed to increase or
reduce the roughly $120 billion worth of Treasuries and mortgage
securities it buys each month.
    U.S. House of Representatives Speaker Nancy Pelosi on
Tuesday invited other top congressional leaders to meet at 4
p.m. (2100 GMT) as they seek to finalize a massive government
spending deal and reach an agreement on a new package of
coronavirus relief, a source said.
    U.S. stock indexes were higher as progress on spending talks
kept spirits high and boosted by Apple Inc's plans to
boost iPhone production.
    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 80 basis points, about two basis point
higher than Monday's close.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was up less than
a basis point at 0.121% in afternoon trading.
    
      December 15 Tuesday 1:26PM New York / 1826 GMT
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.075        0.0761    -0.003
 Six-month bills               0.085        0.0862    0.000
 Two-year note                 100-2/256    0.121     0.004
 Three-year note               99-214/256   0.1799    0.008
 Five-year note                100-2/256    0.3734    0.016
 Seven-year note               99-218/256   0.6468    0.023
 10-year note                  99-152/256   0.9179    0.027
 20-year bond                  98-200/256   1.4456    0.025
 30-year bond                  99-84/256    1.6535    0.025
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         8.00         0.25    
 spread                                               
 U.S. 3-year dollar swap         6.50        -0.25    
 spread                                               
 U.S. 5-year dollar swap         6.25         0.00    
 spread                                               
 U.S. 10-year dollar swap        0.25         0.00    
 spread                                               
 U.S. 30-year dollar swap      -27.25         0.25    
 spread (Reporting by Ross Kerber in Boston; editing by Jonathan Oatis
and Alistair Bell)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up