TREASURIES-Yields fall, slightly soft demand for record five-year note sale

 (Adds auction results, comments from Fed's Williams, updates
prices)
    By Karen Brettell
    NEW YORK, May 27 (Reuters) - U.S. Treasury yields fell on
Wednesday but held in their recent tight range, while the
Treasury sold a record amount of five-year notes to relatively
light demand.
    Yields rose earlier in the day after the European Commission
unveiled a plan to borrow on the market and then disburse to
European Union countries 750 billion euros  ($823 billion) in
grants and loans to help them recover from their
coronavirus-related economic slumps.
    But that reversed after U.S. stocks tumbled from the open.
They clawed back most losses during the day.
    "There was a bit of a retracement in some of the risk
appetite and sentiment," said Jon Hill, an interest rate
strategist at BMO Capital Markets.
    Benchmark 10-year note yields fell two basis
points to 0.680%.
    The yields have traded in a range from 0.543% to 0.785%
since the beginning of April.
    That range reflects investor uncertainty over whether there
will be a new uptick in the spread of the novel coronavirus and
how soon the U.S. economy will be able to recover.
    "That's the uncertainty that's keeping everything in a tight
range," said Gennadiy Goldberg, an interest rate strategist at
TD Securities in New York.
    New York Federal Reserve Bank President John Williams said
Wednesday that officials are evaluating which steps to take to
support the economy, with options including yield curve control.

    The Treasury sold a record $45 billion in five-year notes on
Wednesday to slightly soft demand.
    It comes after a solid sale of a record $44 billion in
two-year notes on Tuesday.
    The Treasury will also sell $38 billion in seven-year notes
on Thursday.
    The U.S. government has been increasing the size of its debt
auctions as it finances spending meant to blunt the economic
impact of business shutdowns aimed at stemming the spread of the
coronavirus.
    
      May 27 Wednesday 3:01PM New York / 1901 GMT
                               Price                  
 US T BONDS JUN0               179-14/32    0-15/32   
 10YR TNotes JUN0              139-28/256   0-40/256  
                               Price        Current   Net Change
                                            Yield %   (bps)
 Three-month bills             0.14         0.1424    0.000
 Six-month bills               0.17         0.1725    0.007
 Two-year note                 99-226/256   0.1838    0.004
 Three-year note               99-184/256   0.2202    -0.003
 Five-year note                100-40/256   0.343     -0.008
 Seven-year note               99-224/256   0.5184    -0.017
 10-year note                  99-120/256   0.6802    -0.018
 30-year bond                  95-140/256   1.4333    -0.006
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         8.25        -0.50    
 spread                                               
 U.S. 3-year dollar swap         5.75         0.25    
 spread                                               
 U.S. 5-year dollar swap         3.50         0.50    
 spread                                               
 U.S. 10-year dollar swap       -1.50        -0.50    
 spread                                               
 U.S. 30-year dollar swap      -47.25        -1.50    
 spread                                               
 
    

 (Reporting by Karen Brettell; editing by Jonathan Oatis and
Cynthia Osterman)
  

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