TREASURIES-U.S. yield curve hovers near decade low

* Fed's Rosengren sees perhaps three more rate hikes in 2018

* JOLTS, U. Michigan consumer sentiment data on tap

NEW YORK, April 13 (Reuters) - The U.S. Treasury yield curve hovered at its lowest level in more than decade on Friday as short-dated yields have risen more than longer-dated ones this week on expectations of further interest rate increases from the Federal Reserve. Minutes from the U.S. central bank's policy meeting last month, which were released on Wednesday, showed most Fed officials were confident inflation is moving toward their desired 2-percent goal as the economy improves. Boston Federal Reserve President Eric Rosengren said Friday the central bank will probably need to raise interest rates three more times in 2018 in response to a robust economy, following a quarter-point rate hike in March. "The Fed appears to be set to keep pressure firmly on the front end," Wells Fargo Securities strategists wrote in a research note, adding they expected the spread between two-year and 10-year yields to shrink to 20 to 25 basis points Some analysts said the curve yield may end up inverting if the curve flattens further. When shorter-dated yields rise above longer-dated ones, this market phenomenon has been a reliable gauge of a U.S. recession. "If that (a curve inversion) happens, investors should take the curve very seriously and ignore the Feds skepticism," Citi analyst Ruslan Bikbov wrote in a note earlier this week. At 9:44 a.m. (1344 GMT), the yield gap on two-year and 10-year Treasuries flattened 1 basis points to 48.20 basis points. It had hit 45.7 basis points on Wednesday, which was the flattest since September 2007, according to Reuters data. Long-dated yields, in the meantime, notched higher on this week's Treasury supply, although the rise has been capped by safe-haven demand on worries about a U.S. strike against Syria.

The U.S. Treasury sold a combined $64 billion worth of three-year, 10-year and 30-year securities to fair demand this week. Overall yield levels were marginally higher with Wall Street stocks expected to open higher following a profit surge at JPMorgan, the biggest U.S. bank by assets, as the quarter earnings season begins. The yield on 10-year Treasury notes was up 0.9 basis points to 2.843 percent. Two-year Treasury note yield was up 0.9 basis points to 2.365 percent. On the data front, the government will release (1400 GMT) "JOLTS" data on job openings for February at 10 a.m. They reached a record high in January. At the same time, the University of Michigan will put out its reading on U.S. consumer sentiment in early April, which is forecast to retreat from a 14-year peak set in March. April 13 Friday 9:43AM New York / 1343 GMT Price

US T BONDS JUN8 145-7/32 -0-5/32 10YR TNotes JUN8 120-104/256 -0-16/256 Price Current Net Yield % Change

(bps)

Three-month bills 1.7225 1.7537 0.008 Six-month bills 1.91 1.955 0.005 Two-year note 99-200/256 2.3648 0.017 Three-year note 99-156/256 2.5111 0.016 Five-year note 99-40/256 2.6828 0.012 Seven-year note 98-244/256 2.7915 0.011 10-year note 99-52/256 2.8432 0.009 30-year bond 99-32/256 3.0447 0.005

DOLLAR SWAP SPREADS

Last (bps) Net

Change (bps)

U.S. 2-year dollar swap 31.50 -0.50

spread

U.S. 3-year dollar swap 25.00 -0.50

spread

U.S. 5-year dollar swap 13.25 0.00

spread

U.S. 10-year dollar swap 3.50 -0.25

spread

U.S. 30-year dollar swap -13.00 -0.25

spread

(Reporting by Richard Leong Editing by Nick Zieminski)