TREASURIES-Yields range-bound ahead of presidential debate, jobs data

(New throughout)
By Kate Duguid
NEW YORK, Sept 29 (Reuters) - U.S. Treasury yields fell
slightly on Tuesday, trading within a tight range as investors
held off from making large moves ahead of the presidential
debate later in the day and employment data due on Wednesday and
Friday.
The yield on the benchmark 10-year Treasury note
has opened or closed within a range of 0.65% to 0.70% for 15
consecutive sessions, said Andrew Brenner, head of international
fixed income at NatAlliance Securities. The yield opened 0.658%
on Tuesday and was last trading lower at 0.651%.
The long bond yield edged down 0.6 basis point
to 1.417%. The two-year yield was down 0.4 basis
point on the day at 0.127%. The anchored two-year yield has
pulled the yield curve, as measured by the spread between the
two- and 10-year yields, slightly flatter.
"Treasuries are poised to make a move," said Brenner,
pointing to the tightening trading range. "These are wound-up in
a narrow range."
Republican President Donald Trump and his Democratic rival
Joe Biden will go head-to-head in their first televised debate
on Tuesday evening. With five weeks to go until the Nov. 3
general election, the stakes are high.
But the low levels of implied volatility measured by the
MOVE index suggest investors believe the debate will be a
non-event for financial markets, said Ian Lyngen, head of U.S.
rates strategy at BMO Capital Markets.
A light schedule of data releases at the start of the week
has also kept Treasuries within a tight range. A breakout may be
possible if there are major surprises in Wednesday's ADP
National Employment Report or Friday's closely watched U.S.
monthly payrolls figures.
"The range-bound nature of the move (in Treasury yields)
supports the notion of a collective reluctance to chase the
price action ahead of Friday's jobs report," said Lyngen.
Treasuries have an opportunity to break out of the current
ranges because of this week's pause in government note and bond
issuance, said Brenner. The Treasury Department has issued more
than $3 trillion in new debt since the end of February.

September 29 Tuesday 3:53PM New York / 1953 GMT
Price
US T BONDS DEC/d 177-1/32 6/32
10YR TNotes DE/d 139-184/256 3/32
Price Current Net
Yield % Change
(bps)
Three-month bills 0.0975 0.0992 -0.005
Six-month bills 0.105 0.1065 -0.001
Two-year note 99-255/256 0.127 -0.004
Three-year note 99-238/256 0.1488 -0.002
Five-year note 99-252/256 0.2531 -0.013
Seven-year note 99-132/256 0.4454 -0.012
10-year note 99-192/256 0.6512 -0.012
30-year bond 98-252/256 1.4168 -0.006
YIELD CURVE Last (bps) Net
Change
(bps)
10-year vs 2-year yield 52.30 -0.30
30-year vs 5-year yield 116.30 0.80
DOLLAR SWAP SPREADS
Last (bps) Net
Change
(bps)
U.S. 2-year dollar swap 9.25 0.00
spread
U.S. 3-year dollar swap 8.75 0.00
spread
U.S. 5-year dollar swap 7.50 0.25
spread
U.S. 10-year dollar swap 3.25 0.00
spread
U.S. 30-year dollar swap -33.75 -0.75
spread


(Reporting by Kate Duguid
Editing by Nick Zieminski and Richard Chang)