REFILE-TREASURIES-U.S. yields gain on virus optimism, outlook still uncertain

 (Changes Friday to Thursday in paragraphs 11 through 13)
    * U.S. virus outbreak nearing a peak -CDC official
    * U.S. coronavirus deaths top 23,000 -Reuters tally
    * Governor says worst may be over for New York
    * Northeast states to coordinate reopening of their
economies

    By Gertrude Chavez-Dreyfuss
    NEW YORK, April 13 (Reuters) - U.S. Treasury yields rose on
Monday, bolstered by news the coronavirus outbreak may be
nearing a peak in the United States, raising hopes for reopening
the economy weeks after restrictions to fight the fast-spreading
disease shut it down.
    U.S. yields were also pushed higher following comments from
New York Governor Andrew Cuomo, who said the worst may be over
for his state in terms of the pandemic, but gains achieved
through social distancing could be undone if "we do something
stupid" and relax those restrictions too quickly.
    Also on Monday, six states in the U.S. Northeast agreed to
coordinate the reopening of their economies by forming a
regional panel to develop a strategy for the gradual lifting of
restrictions aimed at stanching the coronavirus pandemic. Those
states are New York, New Jersey and Connecticut, Delaware,
Pennsylvania and Rhode Island.
    But the outlook remains extremely uncertain and any signs
that the pandemic is stabilizing should be viewed with utmost
caution, analysts said.
    "At the end of the day, we're in an environment where growth
will slow considerably and inflation won't be an issue for the
time being," said Collin Martin, fixed income strategist at
Schwab Center for Financial Research.
    "So I think it would be difficult to see yields go sharply
higher any time soon."
    Volume was light, with markets in Europe closed for Easter
Monday and spurring choppy market action.
    A major deal to cut global oil output and address a glut
that has damaged the energy sector also lifted U.S. yields
earlier in the session. But crude prices fell on concerns even
that would not be enough to head off oversupply with the
coronavirus outbreak crushing demand.
    On the pandemic front, a Reuters tally showed U.S. deaths
from the coronavirus topped 23,000 on Monday, as officials said
the outbreak could reach its peak this week.
    Despite more positive news, risk appetite was still off,
with U.S. stocks down on Monday. 
    In afternoon trading, U.S. 10-year yields rose
to 0.750% from 0.722% late on Thursday. 
    Yields on U.S. 30-year bonds were at 1.383%, up
from 1.348% on Thursday.
    On the short end of the curve, U.S. 2-year yields were last
at 0.243%, up from Thursday's 0.225%. 
    "After the immense volatility we saw in March, the market is
consolidating," said Justin Lederer, Treasury analyst at Cantor
Fitzgerald in New York.
    "The Fed has been buying and there's really no reason to go
too far. We have to wait and see when the world opens up again."
    The U.S. Treasury's substantial $105 billion in three-month
and six-month bill auctions were well subscribed on Monday as
demand for quality debt remained high.
    
      April 13 Monday 3:46PM New York / 1946 GMT
                               Price                  
 US T BONDS JUN0               178          -0-27/32  
 10YR TNotes JUN0              138-4/256    -0-60/25  
                                            6         
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.23         0.234     -0.002
 Six-month bills               0.26         0.2647    0.019
 Two-year note                 100-65/256   0.2452    0.020
 Three-year note               99-204/256   0.3181    0.026
 Five-year note                100-76/256   0.4394    0.028
 Seven-year note               99-242/256   0.633     0.031
 10-year note                  107-8/256    0.757     0.035
 30-year bond                  114-200/256  1.3928    0.045
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap        21.75        -1.25    
 spread                                               
 U.S. 3-year dollar swap        14.25        -2.00    
 spread                                               
 U.S. 5-year dollar swap        13.25        -1.00    
 spread                                               
 U.S. 10-year dollar swap        6.25        -0.75    
 spread                                               
 U.S. 30-year dollar swap      -36.75        -1.75    
 spread                                               
 
 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Dan Grebler
and Tom Brown)
  

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