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TREASURIES-U.S. yields advance as risk appetite increases

Gertrude Chavez-Dreyfuss

NEW YORK, April 16 (Reuters) - U.S. Treasury yields rose to four-week highs on Tuesday, bolstered by gains on Wall Street that have raised appetite for risk, as well as expectations of more positive U.S. and Chinese economic data this week. In a week shortened by the Good Friday holiday, investors are awaiting U.S. retail sales data on Thursday, which could show that the economy is far more stable than expected, analysts said. At the same time, significant Chinese data due late on Tuesday - gross domestic product, retail sales, among others - could provide some insight on how the world's second-largest economy has been performing. After a sluggish start to the year, Chinese reports have been more upbeat than expected as monetary authorities increased stimulus measures. That has eased concerns about a Chinese slowdown. "There's the thought that with China's stimulus, people are going to focus more on Chinese retail sales and the bigger numbers that we get out of China this evening and without momentum in Treasuries right now, it's possible that that's bringing some insurance selling in Treasuries that you wouldn't necessarily anticipate," said Jim Vogel, interest rates strategist, at FTN Financial in Memphis, Tennessee. He added that this expectation on China draws even more focus on U.S. retail sales data. "Today's moves are what you would expect if retail sales numbers are above expectations," Vogel said. U.S. retail sales for March are expected to rise 0.9%, following a 0.2% decline in the previous month, according to a Reuters poll of analysts. In late morning trading, U.S. 10-year note yields rose to 2.581%, up from 2.553% late on Monday. Ten-year yields hit a four-week peak of 2.587%. Yields on U.S. 30-year bonds were also higher, at 2.986% , up from 2.963% on Monday. Thirty-year yields also touched a four-week high of 2.996%. On the short end of the curve, U.S. 2-year yields advanced to 2.402%, compared with Monday's 2.392%. The note's yield hit a four-week peak as well of 2.41 percent. U.S. yields, however, dipped after data showed U.S. manufacturing output was unchanged in March after two straight monthly declines, leading to the largest quarterly decrease in production since 2017. Economists polled by Reuters had forecast manufacturing output edging up 0.1 percent in March.

April 16 Tuesday 10:32AM New York / 1432 GMT

Price Current NetYield % Change


Three-month bills 2.3875 2.4355 -0.002Six-month bills 2.3925 2.4622 0.002Two-year note 99-182/256 2.4021 0.010Three-year note 99-166/256 2.3723 0.013Five-year note 98-192/256 2.394 0.024Seven-year note 98-128/256 2.4861 0.02110-year note 100-96/256 2.5814 0.02830-year bond 100-72/256 2.9856 0.023


Last (bps) Net

Change (bps)

U.S. 2-year dollar swap 10.00 0.25


U.S. 3-year dollar swap 6.75 0.25


U.S. 5-year dollar swap 3.25 -0.25


U.S. 10-year dollar swap -1.25 0.00


U.S. 30-year dollar swap -23.75 0.25


(Reporting by Gertrude Chavez-Dreyfuss; Editing by Steve LOrlofsky)