* Longer-dated yields touch lowest levels since November
* Investors eye U.K. election, ECB meeting, Comey testimony
* China may buy more U.S. bonds as yuan steadies -Bloomberg
(Updates market action, adds quote)
By Richard Leong
NEW YORK, June 6 (Reuters) - U.S. Treasury yields fell on Tuesday as nervous investors favored bonds and other safe-haven assets ahead of a trio of events on Thursday: Britain's general election, the European Central Bank's policy meeting and former FBI Director James Comey's testimony before a Senate panel.
A tightening race between the ruling Conservative Party over the opposition Labor Party, based on recent polls, raised uncertainty about Britain's path in its divorce from the European Union. Traders have speculated whether ECB policymakers might signal a possible end to the central bank's bond purchase program at its upcoming meeting in light of evidence of an improving European economy. Comey's first public appearance since he was fired by U.S. President Donald Trump might shed more light on a probe by the Federal Bureau of Investigation into alleged Russian meddling in last year's U.S. presidential election. "We have risk events piling up," said Blake Gwinn, U.S. rates strategist at NatWest Markets in Stamford, Connecticut. "We'll be very focused on what happens on Thursday, but it might end up being a dud."
Safe-haven bids pushed benchmark U.S. 10-year Treasury yields to 2.129 percent, the lowest since Nov. 10, which was two days after Trump's surprise election victory.
At 10:02 a.m. (1502 GMT), the 10-year yield was 2.145 percent, down nearly 4 basis points from late on Monday, Reuters data showed.
A Bloomberg report that said China was ready to purchase more U.S. government debt as the yuan has stabilized brought a wave of Treasuries buying earlier on Tuesday, analysts said. "It's just one more factor in a risk-off day," Gwinn said. June 6 Tuesday 10:03AM New York / 1403 GMT
PriceUS T BONDS SEP7 155-2/32 0-23/32 10YR TNotes SEP7 126-196/2560-76/256
PriceCurrent Net
Yield % Change
(bps)Three-month bills 0.9675 0.9834-0.005Six-month bills 1.0651.08570.000Two-year note 99-234/256 1.294 -0.012Three-year note 100-56/256 1.4236-0.019Five-year note 100-48/256 1.7105-0.030Seven-year note 100-68/256 1.9591-0.03610-year note 102-12/256 2.1451-0.03530-year bond 103-228/2562.807 -0.033
DOLLAR SWAP SPREADS
Last (bps) Net
Change
(bps) U.S. 2-year dollar swap20.75-0.50spread S U.S. 3-year dollar swap19.00 0.00spread U.S. 5-year dollar swap 7.75 0.25spread U.S. 10-year dollar swap -5.25 0.25spread U.S. 30-year dollar swap-43.75 0.00spread
(Reporting by Richard Leong; Editing by Meredith Mazzilli)
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