* Apple says unlikely to meet sales guidance
* Thirty-year yields lowest since September
By Karen Brettell
NEW YORK, Feb 18 (Reuters) - U.S. Treasury yields fell on
Tuesday after Apple Inc warned that it would miss sales
guidance due to manufacturing slowdowns caused by the
coronavirus, denting risk appetite and increasing demand for
safe-haven bonds.
Apple said it was unlikely to meet the March quarter sales
guidance it had set just three weeks ago.
HSBC Holdings PLC also warned about the impact of
the coronavirus on its Asia business.
“With Apple coming out and missing sales just on the
coronavirus, it continued the risk-off tone on growth concerns,”
said Justin Lederer, an interest rate strategist at Cantor
Fitzgerald in New York.
German economic data also showed the virus weighing on
sentiment.
The mood among German investors deteriorated far more than
expected in February on worries that the coronavirus outbreak
would dampen world trade.
The latest data provided by China on people infected with
coronavirus indicates a decline in new cases but "every scenario
is still on the table" in terms of the epidemic's evolution, the
World Health Organization said on Monday.
Benchmark 10-year note yields fell three basis
points to 1.56%.
Thirty-year bond yields dropped four basis
points to 2.01%. They earlier fell to 1.98%, the lowest since
Sept. 5, and are approaching a record low of 1.905% set on Aug.
28.
A global thirst for yield and expectations that inflation
will remain tepid has increased demand for longer-dated U.S.
debt and driven the U.S. yield curve flatter.
February 18 Tuesday 9:16AM New York / 1416 GMT
Price Current Net
Yield % Change
(bps)
Three-month bills 1.55 1.5816 0.005
Six-month bills 1.525 1.5621 0.008
Two-year note 99-239/256 1.4096 -0.014
Three-year note 99-254/256 1.3777 -0.016
Five-year note 99-234/256 1.393 -0.021
Seven-year note 100-28/256 1.4833 -0.026
10-year note 99-116/256 1.5593 -0.029
30-year bond 99-208/256 2.0083 -0.035
DOLLAR SWAP SPREADS
Last (bps) Net
Change
(bps)
U.S. 2-year dollar swap 2.50 -0.25
spread
U.S. 3-year dollar swap 1.25 -0.25
spread
U.S. 5-year dollar swap -1.00 0.00
spread
U.S. 10-year dollar swap -5.75 0.00
spread
U.S. 30-year dollar swap -33.00 0.25
spread
(Reporting by Karen Brfettell; editing by Jonathan Oatis)
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