TREASURIES-U.S. bonds gain on weak business-spending data
* Greece, creditors wrestle over reforms to reach debt deal
* Weak U.S. business investment data spurs bids for bonds
* Analysts see no hint of rate move from Fed next week
* Benchmark yields rise on week to middle of recent range
(Adds quote, updates market action)
By Richard Leong
NEW YORK, April 24 (Reuters) - U.S. Treasuries prices rose
on Friday as data showing weakness in U.S. business investment
in March supported the view that it is unlikely the Federal
Reserve will signal next week it is close to raising interest
rates.
The absence of a breakthrough in debt negotiations between
Greece and its creditors also underpinned safe-haven demand for
low-risk government debt, analysts said.
Before the two-day Federal Open Market Committee meeting
that will begin next Tuesday, benchmark yields rose for the
week, ending in the middle of the 1.80-2.01 percent range set in
the past four weeks.
"We expect the FOMC to leave everything on the table and
maintain a similar tone to the last statement," said Ira Jersey,
head of U.S. interest rate strategy at Credit Suisse (NYSE: CS - news) in New (KOSDAQ: 160550.KQ - news)
York. "We think the long end will remain relatively stable even
if the Fed does become a bit more hawkish."
A wave of disappointing domestic data since the March FOMC
meeting has spurred economists to downgrade their outlooks for
the U.S. economy in 2015.
The U.S. Commerce Department said on Friday a closely
watched proxy for business spending plans fell 0.5 percent last
month.
In overseas developments, Greece offered some concessions on
reforms demanded by lenders in exchange for new funding. But
euro zone creditors said negotiations must speed up to get a
deal done by June, when Athens is expected to run out of cash.
"The situation is very uncertain. That causes investor
anxiety and creates a bid for high-quality assets" such as
Treasuries, said Jeff MacDonald, Fiduciary Trust's director of
fixed income strategy in New York.
The rise in Treasuries prices was muted by Thursday's record
high set by the Standard & Poor's 500 index, along with a
pullback in German Bunds, whose 10-year yields were
on track for their biggest weekly rise since December.
In late afternoon U.S. trading, benchmark U.S. 10-year
Treasury notes were up 9/32 in price for a yield of
1.921 percent, down 3.1 basis points from Thursday.
The 10-year yield was set to rise nearly 7 basis points on
the week after hitting 1.993 percent on Wednesday, which was the
highest in 3-1/2 weeks, according to Reuters data.
The 30-year bond was up 14/32 in price to yield
2.616 percent, down 2.1 basis points. The yield was on track to
rise 11 basis points on the week.
(Reporting by Richard Leong; Editing by Peter Galloway and Dan
Grebler)