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TREASURIES-Recession fears pummel U.S. 30-year yields to near record low – Reuters

TREASURIES-Recession fears pummel U.S. 30-year yields to near record low – Reuters

* U.S. to sell $27 billion 10-year notes at 1 p.m. * Rate cuts by Asian central bank spur more bond buying (Updates market action, adds quote, table) By Richard Leong NEW YORK, Aug 7 (Reuters) – U.S. Treasury yields tumbled on Wednesday, with 30-year yields nearing record lows, on growing fears over a global…

    * U.S. to promote $27 billion 10-300 and sixty five days notes at 1 p.m. 
    * Rate cuts by Asian central bank spur more bond purchasing

 (Updates market action, provides quote, desk)
    By Richard Leong
    NEW YORK, Aug 7 (Reuters) - U.S. Treasury yields tumbled on
Wednesday, with 30-300 and sixty five days yields nearing epic lows, on growing
fears over a world financial downturn and bets the Federal
Reserve would need to purchase up its paddle of hobby fee cuts to
counter growing recession risks.
    A carefully watched U.S. recession indicator, the pinnacle fee on
three-month Treasury invoice charges over 10-300 and sixty five days Treasury yields
elevated to its absolute top diploma since March 2007. 
    Bond yields fell all around the field with German yields hitting
epic lows in negative territory. That came within the wake of 
several Asian central banks lowering their key hobby charges to
address articulate concerns stemming from the escalating commerce war
between China and United States.
    Rate cuts in Unique Zealand, India and Thailand touched off a
flood of purchasing for of longer-dated bonds in Asia, which persisted
into European and U.S. trading, analysts acknowledged.
    "The shipping of fee cuts from central banks in a single other nation added
gasoline to the rally," acknowledged Jonathan Cohn, hobby fee strategist
at Credit ranking Suisse in Unique York.
    Torrid keep aside an reveal to for Treasuries is expected to enhance keep aside an reveal to
for $27 billion of 10-300 and sixty five days executive notes for
sale at 1 p.m. ET.
    The ten-300 and sixty five days show camouflage sale is fragment of this week's $84 billion
quarterly refunding which is expected to enhance $26.7 billion in
money for new federal spending.   
    In "when-issued" exercise, merchants expected the most fresh
10-300 and sixty five days show camouflage present to bag a yield of 1.637%, which will likely be a
3-300 and sixty five days low at a 10-300 and sixty five days show camouflage auction.
    On the begin market, the yields on benchmark 10-300 and sixty five days notes
 contain been 10.20 basis factors lower at 1.6365%. They had
fallen earlier to 1.595%, the bottom since October 2016.
    The costs on 30-300 and sixty five days or lengthy bonds contain been up 3 factors in
brand, placing them heading within the correct course for a sixth day of gains.
    Thirty-300 and sixty five days yields contain been down 12.20 basis factors
at 2.1475% after it hit 2.123% earlier, which was as soon as now no longer far from
an all-time low of 2.089% set of living in July 2016, in accordance with
Refinitiv recordsdata.
    Longer-dated Treasuries posted a 6.02% entire return over the
prior 5 days, the most spirited such get since October 2011,
in accordance with an index compiled by Bloomberg and Barclays.

    Curiosity charges futures suggested merchants are building bets
the Fed would cut hobby charges three more times by 300 and sixty five days-stay to
avert a recession.
    Investors' terror about a recession was as soon as underscored by the
inversion between three-month payments and 10-300 and sixty five days yields, which 
deepened to 39 basis factors, a diploma now no longer considered since March 2007.
    
August 7 Wednesday 11:17AM Unique York / 1517 GMT
                               Price                  
 US T BONDS SEP9               163-9/32     73/32     
 10YR TNotes SEP9              130-116/256  22/32     
                               Price        Contemporary   Salvage
                                            Yield %   Swap
                                                      (bps)
 Three-month payments             1.98         2.0176    -0.031
 Six-month payments               1.89         1.94      -0.062
 Two-300 and sixty five days show camouflage                 100-100/256  1.5487    -0.062
 Three-300 and sixty five days show camouflage               100-14/256   1.4813    -0.070
 5-300 and sixty five days show camouflage                101-88/256   1.4691    -0.077
 Seven-300 and sixty five days show camouflage               102-40/256   1.5478    -0.084
 10-300 and sixty five days show camouflage                  106-164/256  1.6365    -0.102
 30-300 and sixty five days bond                  115-240/256  2.1475    -0.122
         YIELD CURVE           Ideal (bps)   Salvage       
                                            Swap    
                                            (bps)     
 10-300 and sixty five days vs 2-300 and sixty five days yield       8.60         -2.90     
 30-300 and sixty five days vs 5-300 and sixty five days yield       67.70        -4.00     
   DOLLAR SWAP SPREADS                                
                               Ideal (bps)   Salvage       
                                            Swap    
                                            (bps)     
 U.S. 2-300 and sixty five days dollar swap        -2.50        -2.25    
 spread                                               
 U.S. 3-300 and sixty five days dollar swap        -5.00        -1.25    
 spread                                               
 U.S. 5-300 and sixty five days dollar swap        -7.50        -1.75    
 spread                                               
 U.S. 10-300 and sixty five days dollar swap      -12.00        -1.75    
 spread                                               
 U.S. 30-300 and sixty five days dollar swap      -40.75        -1.50    
 spread                                               
 
    

 (Reporting by Richard Leong; Editing by Bernadette Baum)
  

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