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TREASURIES-Yields tick up on hopes for limited economic impact from coronavirus

By Ross Kerber

By Ross Kerber NEW YORK, Feb 6 (Reuters) - U.S. Treasury yields ticked higher on Thursday as investors judged China's efforts to contain the spreading coronavirus would be enough to contain its economic impact. The benchmark 10-year yield was up 1.4 basis points at 1.6629%. The fast-moving coronavirus dragged down production at more global businesses on Thursday and the death toll jumped by 73 to 563, with more than 28,000 confirmed infections in the world's second-largest economy. But China's announcement of a tariff cut on some imports from the United States was seen by analysts as a move to boost confidence and part of a broader government response. "Economically the impact seems somewhat containable, and not sustained. It won't change the shape of the economy (in China) in the long run," said Andrew Richman, managing director of fixed income strategies at SunTrust Advisory Services. Separately, the number of Americans filing for unemployment benefits dropped to a nine-month low last week, suggesting a tightening labor market would continue keep the longest economic expansion in history on track. The economy is, however, likely to remain on a moderate growth path, with other data on Thursday showing worker productivity rebounding less than expected in the fourth quarter. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 1.4 basis points at 1.4552% in morning trading. February 6 Thursday 9:58AM New York / 1458 GMT ` Price Current Net Yield % Change (bps) Three-month bills 1.53 1.5615 -0.001 Six-month bills 1.53 1.5676 0.000 Two-year note 99-216/256 1.4552 0.014 Three-year note 100-36/256 1.4508 0.016 Five-year note 99-130/256 1.4778 0.018 Seven-year note 99-116/256 1.583 0.017 10-year note 100-200/256 1.6629 0.014 30-year bond 105-76/256 2.1336 0.001 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 5.75 -0.25 spread U.S. 3-year dollar swap 2.25 -0.25 spread U.S. 5-year dollar swap 0.50 0.00 spread U.S. 10-year dollar swap -4.50 0.00 spread U.S. 30-year dollar swap -32.50 0.00 spread (Reporting by Ross Kerber; Editing by Dan Grebler)