TREASURIES-Yields rise as stimulus hopes, retail sales boost risk appetite

    By Karen Brettell
    NEW YORK, June 16 (Reuters) - U.S. Treasury yields rose on
Tuesday as hopes of further U.S government stimulus boosted risk
appetite, and after data showed that American retail sales had a
record rise in May.
    Stocks gained on a report that the Trump administration is
preparing a nearly $1 trillion infrastructure proposal as part
of its push to spur the world's largest economy back to life.

    Risk sentiment was further uplifted after the Commerce
Department said overall retail receipts rose 17.7% last month
after falling by a record 14.7% in April, as 2.5 million
Americans went back to work and people began moving about more
freely.
    “It was a pretty big blowout relative to expectations,” said
Tom Simons, a money market economist at Jefferies in New York.
“The data prints have been suggestive of a more broad based and
more robust recovery (than previously expected) and the market
is really focusing on that.”
    Benchmark 10-year note yields gained seven basis
points to 0.768%. They remain below an 11-week high of 0.959% on
June 5, when data showed that employers unexpectedly added jobs
in May.
    The yield curve between two-year and 10-year notes
 steepened four basis points to 57 basis points.
    The Federal Reserve also cheered markets on Monday after it
said it would begin buying corporate bonds in the secondary
market.
    The U.S. central bank last week signaled it plans years of
extraordinary support for the economy, with policymakers
projecting the economy to shrink 6.5% in 2020 and the
unemployment rate to be 9.3% at year's end.
    Fed Chair Jerome Powell is expected to repeat this message
when he testifies before Congress on Tuesday and Wednesday.
    
      June 16 Tuesday 9:33AM New York / 1333 GMT
                               Price                  
 US T BONDS SEP0               175-11/32    -1-31/32  
 10YR TNotes SEP0              138-84/256   -0-104/2  
                                            56        
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.175        0.1775    -0.001
 Six-month bills               0.19         0.1928    0.003
 Two-year note                 99-219/256   0.1991    0.010
 Three-year note               100-12/256   0.2343    0.013
 Five-year note                99-122/256   0.3567    0.031
 Seven-year note               99-120/256   0.578     0.044
 10-year note                  98-164/256   0.7677    0.066
 20-year bond                  96-128/256   1.3256    0.095
 30-year bond                  92-204/256   1.5519    0.103
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         6.75         0.00    
 spread                                               
 U.S. 3-year dollar swap         4.75         0.25    
 spread                                               
 U.S. 5-year dollar swap         4.50         0.00    
 spread                                               
 U.S. 10-year dollar swap       -1.50         0.00    
 spread                                               
 U.S. 30-year dollar swap      -49.00         0.00    
 spread                                               
                                                      
 

    

 (Reporting by Karen Brettell; editing by Jonathan Oatis)
  

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