* Ge股指期货裸卖空股指期货裸卖空opolitical te股指期货裸卖空n股指期货裸卖空sions between U.S., China in focus
* Month-end demand helps bond markets
* Next week's jobs report next major economic focus
By Karen Brettell
NEW YORK, Nov 29 (Reuters) - U.S. Treasury yields inched
higher on Friday, erasing an earlier fall after China said it
would retaliate to the United States passing legislation backing
anti-government protestors in Hong Kong, potentially reducing
the chance that the two countries will reach a deal to
deescalate their trade war.
Bond yields fell overnight after China said on Thursday that
it would take "firm counter measures" in response to U.S.
legislation, and that attempts to interfere in the Chinese-ruled
city were doomed to fail.
It comes after officials in both countries have talked up
the odds that the U.S. and China will reach a “phase one” trade
deal, which may include a rollback in tariffs placed on each
Benchmark 10-year note yields were last 1.774%,
up from 1.767% late Wednesday. The bond market was closed on
Thursday for the Thanksgiving Day holiday and will close early
at 2:00 pm EST on Friday.
Trading volumes were light as many traders and investors
remained on holiday between Thanksgiving Day and the weekend.
Month-end demand by investors rebalancing bond portfolios
was seen as helping demand for bonds on Friday.
The New York Federal Reserve also injected $88.45 billion in
liquidity into the overnight repurchase agreement market on
Friday as part of its ongoing operations to support short-term
Funding stresses in September prompted the Federal Reserve
to intervene and it has pledged to continue the operations
through the year-end period, when banks and other investors
reduce risk taking, which can elevate funding stresses.
The next major U.S. economic focus will be the jobs report
for November, which will be released next Friday.
November 29 Friday 9:27AM New York / 1427 GMT
Price Current Net Change
Yield % (bps)
Three-month bills 1.565 1.5928 -0.015
Six-month bills 1.5825 1.6216 0.003
Two-year note 99-192/256 1.6279 0.002
Three-year note 100 1.6249 0.008
Five-year note 99-92/256 1.6341 0.010
Seven-year note 99-88/256 1.725 0.006
10-year note 99-200/256 1.774 0.007
30-year bond 103-236/256 2.1956 0.004
DOLLAR SWAP SPREADS
Last (bps) Net
U.S. 2-year dollar swap 0.25 0.00
U.S. 3-year dollar swap -3.25 0.00
U.S. 5-year dollar swap -4.75 0.00
U.S. 10-year dollar swap -8.25 -0.25
U.S. 30-year dollar swap -33.25 0.25
(Editing by Chizu Nomiyama)