TREASURIES-Longer-term yields slightly higher after Fed meeting

    (Updates market activity; adds details from Federal Reserve,
analyst comment)
    By Ross Kerber
    July 29 (Reuters) - Longer-term U.S. Treasury yields moved
slightly higher on Wednesday after the Federal Reserve renewed
its pledge to keep interest rates near zero to help the economy
recover from the COVID-19 pandemic.
    The benchmark 10-year yield was almost unchanged
at 0.579%, while the yield on the 30-year note was
up 1.9 basis points at 1.2424%.
    Fed policy makers made comments in line with market
expectations in the statement issued at the end of their two-day
meeting, including repeating a pledge to use the U.S. central
bank's "full range of tools" to support the economy.
    Evercore ISI macro research analyst Stan Shipley said the
Fed appeared to be waiting to judge the full impact of its
actions to date, including the extension of credit facilities.
    "The Fed has done a lot and they have made sure that capital
markets have not collapsed. Whether that’s going to be enough to
give you stimulus amid the public health crisis, that’s an open
question," Shipley said.
    The stakes for the central bank are high as recent data
suggests a nascent economic recovery may have stalled and that
declining trends in unemployment may have reversed.
    A closely watched part of the U.S. Treasury yield curve
measuring the gap between yields on two- and 10-year Treasury
notes, seen as an indicator of economic
expectations, was at 45 basis points, roughly a basis point
higher than Tuesday's close but well off the level of 68 basis
points reached on June 5.
    The five-year note was down 1.3 basis points at 0.2531%,
after touching a record low of 0.252%.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was down 1.2
basis points at 0.1309% in afternoon trading.

      July 29 Wednesday 2:59PM New York / 1859 GMT

                               Price        Current   Net
                                            Yield %   Change
 Three-month bills             0.1          0.1014    -0.008
 Six-month bills               0.11         0.1119    -0.012
 Two-year note                 99-253/256   0.1309    -0.012
 Three-year note               99-238/256   0.1488    -0.016
 Five-year note                99-252/256   0.2531    -0.013
 Seven-year note               99-154/256   0.4328    -0.008
 10-year note                  100-112/256  0.579     -0.002
 20-year bond                  101-224/256  1.0201    0.012
 30-year bond                  100-48/256   1.2424    0.019

                               Last (bps)   Net
 U.S. 2-year dollar swap         7.50         0.25
 U.S. 3-year dollar swap         6.25         0.50
 U.S. 5-year dollar swap         4.00         0.50
 U.S. 10-year dollar swap       -0.75         0.25
 U.S. 30-year dollar swap      -41.75        -0.75

 (Reporting by Ross Kerber in Boston; Editing by Steve Orlofsky
and Leslie Adler)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.