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TREASURIES-Investors drive down yields ahead of Powell remarks

 (Updates with market activity, details on changes)
    By Ross Kerber
    Feb 22 (Reuters) - Investors drove U.S. Treasury yields down
from milestone highs on Monday as they looked ahead to remarks
U.S. Federal Reserve chairman Jerome Powell is set to give on
Tuesday in Washington.
    The benchmark 10-year yield was unchanged at
1.3449% in midday trading. It had been as high as 1.394%
overnight, the highest since February 2020, on expectations of
faster U.S. growth and inflation, then fell back with equity
markets.
    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 shepherd 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 2.14% 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.
     U.S. stock indexes fell on Monday as the high Treasury
yields and prospects of rising inflation triggered valuation
concerns, hitting shares of high-flying growth
companies.
    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%.
        
  February 22 Monday 11:57AM New York / 1657 GMT
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.03         0.0304    -0.003
 Six-month bills               0.045        0.0456    0.005
 Two-year note                 100-7/256    0.1109    0.002
 Three-year note               99-184/256   0.2198    0.006
 Five-year note                98-246/256   0.5889    0.008
 Seven-year note               98-118/256   0.98      0.001
 10-year note                  97-244/256   1.3449    0.000
 20-year bond                  98-56/256    1.9835    0.005
 30-year bond                  94-16/256    2.1445    0.004
                                                      
   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        11.00         0.50    
 spread                                               
 U.S. 5-year dollar swap        12.75        -0.25    
 spread                                               
 U.S. 10-year dollar swap        8.00        -0.50    
 spread                                               
 U.S. 30-year dollar swap      -23.00        -1.75    
 spread (Reporting by Ross Kerber in Boston; editing by Nick Zieminski
and Mark Heinrich)
  
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