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CORRECTED-TREASURIES-Investors leave yields settled ahead of Powell remarks

 (Corrects language on TIPS in fifth paragraph)
    By Ross Kerber
    Feb 22 (Reuters) - Investors left U.S. Treasury yields
little changed on Monday as they looked ahead to remarks U.S.
Federal Reserve chairman Jerome Powell is scheduled to give on
Tuesday in Washington.
    The benchmark 10-year yield was up less than a
basis point at 1.3517% in morning trading. It had been as high
as 1.394% overnight, the highest since February of 2020.
    Powell is scheduled to speak Tuesday before the Senate
Banking Committee, and investors will be watching to see if he
offers any changes to the central bank's dovish outlook of 
recent months as it looks to bring the economy through the
COVID-19 pandemic.
    Bryn Mawr Trust Director of Fixed Income Jim Barnes said
investors will watch to see if Powell gives a more optimistic
assessment of U.S. economic growth and for signs it might be
quicker to act to control inflation.
    Doing so could help bring down the TIPS break even inflation
rate. The 10-year U.S. TIPS break even inflation rate
 was at 2.151% and has been above 2% since Jan 27.
    "If there's anything that can break the streak of higher
yields it can be the Fed," Barnes said.
    Wall Street's main indexes opened lower on Monday as
climbing Treasury yields and prospects of rising inflation
triggered valuation concerns.
    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 124 basis points, about a basis point
higher than Friday's close and the highest since 2017.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was up less than
a basis point at 0.1109% in morning trading.
    
  February 22 Monday 9:28AM New York / 1428 GMT
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.03         0.0304    -0.003
 Six-month bills               0.04         0.0406    0.000
 Two-year note                 100-7/256    0.1109    0.002
 Three-year note               99-182/256   0.2225    0.008
 Five-year note                98-240/256   0.5937    0.013
 Seven-year note               98-104/256   0.9883    0.009
 10-year note                  97-228/256   1.3517    0.007
 20-year bond                  98-36/256    1.9883    0.009
 30-year bond                  94-8/256     2.146     0.006
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         9.50         0.25    
 spread                                               
 U.S. 3-year dollar swap        10.50         0.00    
 spread                                               
 U.S. 5-year dollar swap        13.00         0.00    
 spread                                               
 U.S. 10-year dollar swap        8.00        -0.50    
 spread                                               
 U.S. 30-year dollar swap      -22.00        -0.75    
 spread (Reporting by Ross Kerber in Boston; editing by Alistair Bell
and Nick Zieminski)
  
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