TREASURIES-Yields edge higher before record week of supply

 (New throughout, updates prices, market activity and comments)
    By Karen Brettell
    NEW YORK, Aug 10 (Reuters) - U.S. Treasury yields rose on
Monday before the Treasury will sell record amounts of three, 10
and 30-year debt, and as the Dow Jones stocks index hit the
highest in more than five months.
    "We’ve got a record refunding for August starting tomorrow,"
said Kim Rupert, senior economist at Action Economics in San
Francisco. Also "equities have maintained a pretty solid bid."
    The Treasury last week increased the size of auctions across
the curve as it finances spending meant to blunt the economic
impact of the coronavirus.
    Benchmark 10-year note yields increased by a
basis point to 0.576%. They dipped as low as 0.504% on Thursday,
which was the lowest on record with the exception of March 9,
when the yields fell by an extraordinary 30 basis points in one
day.
    The yield curve between two-year and 10-year notes
 steepened by less than a basis point to 44 basis
points.
    Yield increases have been capped by ongoing uncertainty
about the strength of the economic recovery, and by escalating
tensions between the United States and China.
    "There’s a lot of ongoing concerns about the recovery, about
the virus, about the political uncertainties, geopolitical angst
- so there are a lot of reasons to still be bidding for
Treasuries," said Rupert. 
    President Donald Trump signed executive orders on Saturday
partly restoring enhanced unemployment payments to the tens of
millions of Americans who lost jobs in the coronavirus pandemic.

    But some of the measures were likely to face legal
challenges as the U.S. Constitution gives Congress authority
over federal spending.
    U.S. Treasury Secretary Steven Mnuchin on Monday said the
Trump administration and Congress could reach a deal as soon as
this week, but Democrats said the sides have not spoken since
talks collapsed last Friday.
    China imposed sanctions on 11 U.S. citizens including
lawmakers from President Donald Trump Republican Party on Monday
in response to Washington's sanctions on Hong Kong and Chinese
officials accused of curtailing political freedoms in the former
British colony.
    
August 10 Monday 3:00PM New York / 1900 GMT
                               Price                  
 US T BONDS SEP0               181-8/32     -0-11/32  
 10YR TNotes SEP0              139-224/256  -0-20/25  
                                            6         
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.0975       0.0991    0.000
 Six-month bills               0.12         0.1217    0.005
 Two-year note                 99-253/256   0.1309    0.004
 Three-year note               99-240/256   0.1464    0.008
 Five-year note                100-18/256   0.2358    0.007
 Seven-year note               99-184/256   0.416     0.009
 10-year note                  100-120/256  0.5755    0.014
 20-year bond                  101-212/256  1.0226    0.020
 30-year bond                  100-4/256    1.2494    0.020
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         8.75         0.75    
 spread                                               
 U.S. 3-year dollar swap         7.75         0.50    
 spread                                               
 U.S. 5-year dollar swap         6.75         0.75    
 spread                                               
 U.S. 10-year dollar swap        1.50         0.50    
 spread                                               
 U.S. 30-year dollar swap      -38.00         0.50    
 spread                                               
                                                      
 
 (Editing by David Gregorio)
  

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