Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1709
    +0.0015 (+0.13%)
     
  • GBP/USD

    1.2620
    -0.0002 (-0.02%)
     
  • Bitcoin GBP

    55,816.11
    +91.88 (+0.16%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

TREASURIES-U.S. bond prices rise on weak data before FOMC

* Soft durable goods data supports view of Fed on hold

* Abe's stimulus plan for Japan raises bets on BOJ action

* U.S (Other OTC: UBGXF - news) . to sell $15 bln in 2-year floating-rate notes

By Richard Leong

NEW YORK, July 27 (Reuters) - A disappointing report on

durable goods orders in June lifted U.S. Treasury prices on

Wednesday as investors awaited possible clues on an interest

rate increase from the Federal Reserve at the conclusion of its

two-day meeting.

A steeper-than-forecast 4 percent drop in demand for

airplanes and other big-ticket items revived worries about the

domestic manufacturing sector and reinforced the notion the

ADVERTISEMENT

Federal Open Market Committee, the U.S. central bank's

policy-setting group, would leave its target range on interest

rates at 0.25 percent to 0.75 percent.

"The best thing for the Fed is essentially take a pass,"

said Aaron Kohli, interest rate strategist at BMO Capital

Markets in New York.

Interest rates futures implied traders saw about a 48

percent chance the FOMC would raise rates at its December

meeting, compared with 52 percent on Tuesday, CME Group (Kuala Lumpur: 7018.KL - news) 's

FedWatch program showed.

The FOMC is scheduled to release its policy statement at 2

p.m. (1800 GMT).

Another factor underpinning the fall in U.S. yields was

expectations of more stimulus from the Bank of Japan following

Japanese Prime Minister Shinzo Abe's plan for a surprisingly

large $265 billion stimulus package in an effort to boost his

country's sluggish economy.

The two-year Treasury yield, which is sensitive

to traders' views on Fed policy, slipped nearly 1 basis point to

0.754 percent. It (Other OTC: ITGL - news) reached 0.778 percent on Tuesday, its highest

since Britain's vote to leave the European Union on June 23.

Benchmark 10-year Treasury notes were up 4/32 in

price for a yield of 1.547 percent, down 1 basis point from late

on Tuesday, while the 30-year bond was up 14/32 in

price to yield 2.260 percent, down 2 basis points.

On the supply front, the U.S. Treasury Department will sell

$15 billion of two-year floating-rate notes at 11:30 a.m. (1530

GMT), following poor sales of two-year and five-year fixed-rate

debt on Monday and Tuesday.

July 27 Wednesday 10:15AM New York / 1415 GMT

Price

US T BONDS SEP6 172-9/32 0-13/32

10YR TNotes SEP6 132-56/256 0-24/256

Price Current Net

Yield % Change

(bps)

Three-month bills 0.315 0.3196 -0.002

Six-month bills 0.4175 0.4242 0.002

Two-year note 100 0.75 -0.012

Three-year note 99-178/256 0.8543 -0.011

Five-year note 99-238/256 1.1395 -0.015

Seven-year note 99-244/256 1.3821 -0.012

10-year note 100-172/256 1.5507 -0.010

30-year bond 105-20/256 2.2647 -0.015

DOLLAR SWAP SPREADS

Last (bps) Net (LSE: 0LN0.L - news)

Change

(bps)

U.S. 2-year dollar swap 22.25 0.50

spread

U.S. 3-year dollar swap 18.50 0.75

spread

U.S. 5-year dollar swap 2.25 -1.00

spread

U.S. 10-year dollar swap -10.00 0.00

spread

U.S. 30-year dollar swap -43.75 0.00

spread

(Reporting by Richard Leong; Editing by Dan Grebler)