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TREASURIES-Yields dip on month-end buying, weak U.S. housing data

* 30-yr yield hits more than 5-week low of 2.866 pct

* 10-yr yield on track to fall about 7 basis points in May

* U.S. pending home sales drop 1.3 pct in April

NEW YORK, May 31 (Reuters) - Long-dated U.S. Treasury yields touched their lowest in more than five weeks and benchmark yields their lowest in nearly two weeks on month-end buying and U.S. housing data that fanned doubts that the Federal Reserve would raise interest rates again in 2017 beyond June. U.S. 30-year yields touched 2.866 percent, their lowest since April 21, and benchmark 10-year yields touched their lowest in 13 days of 2.198 percent after the National Association of Realtors said its Pending Home Sales Index, based on contracts signed last month, dropped 1.3 percent in April to 109.8. That figure disappointed expectations of economists for a 0.5 percent rise last month and, together with purchases of U.S. government debt for month-end portfolio rebalancing, pushed yields lower. "Clearly the momentum is on the side of Treasuries," said Lou Brien, a market strategist at DRW Trading in Chicago. Along with 10-year yields, yields on Treasuries maturing between three and seven years touched their lowest in 13 days, with three-year yields hitting 1.427 percent. U.S. two-year yields hit their lowest in eight days of 1.278 percent. Short-dated yields are considered more vulnerable to Fed rate hikes. The U.S. housing data stoked doubts that the Fed, which is widely expected to raise interest rates at the end of its June 13-14 meeting, would hike rates again after that over the rest of the year. The U.S. central bank last raised rates in March, and at the time telegraphed a plan to lift them two more times in 2017. Weak U.S. economic data, including soft inflation readings, have combined with concerns about delays to U.S. President Donald Trump's efforts to cut taxes and increase infrastructure spending to put 10-year yields on track to fall 7 basis points and 30-year yields on track to drop about 8 basis points in May to mark their second straight monthly declines. "With the economy not roaring ahead, and with inflation metrics proving disappointing, the market is not pricing in significant tightenings by the Fed beyond June," said Stan Shipley, bond strategist at Evercore ISI in New York. "The housing number plays into that," he said in reference to the pending home sales data. U.S. three-year yields were last set to fall about 2 basis points in May, while two-year yields were set to rise about 1 basis point to mark their eighth straight monthly rise. Benchmark 10-year Treasuries were last up 2/32 in price to yield 2.208 percent.

May 31 Wednesday 10:58AM New York / 1458 GMT Price

US T BONDS JUN7 154-25/32 0-6/32 10YR TNotes JUN7 126-120/256 0-8/256 Price Current Net Yield % Change

(bps)

Three-month bills 0.9625 0.9782 0.000 Six-month bills 1.055 1.0754 -0.006 Two-year note 99-240/256 1.2818 -0.004 Three-year note 100-50/256 1.4322 -0.003 Five-year note 99-248/256 1.7565 -0.003 Seven-year note 99-216/256 2.024 -0.005 10-year note 101-124/256 2.208 -0.007 30-year bond 102-120/256 2.8764 -0.008

DOLLAR SWAP SPREADS

Last (bps) Net

Change (bps)

U.S. 2-year dollar swap 22.75 0.25

spread

U.S. 3-year dollar swap 20.50 0.00

spread

U.S. 5-year dollar swap 7.25 -0.25

spread

U.S. 10-year dollar swap -6.00 0.25

spread

U.S. 30-year dollar swap -44.50 0.00

spread

(Reporting by Sam Forgione; Editing by Jonathan Oatis)