By Ross Kerber
    Aug 24 (Reuters) - Stable U.S. Treasury yields on Monday
showed traders preparing for a consequential week of new supply
and guidance from the U.S. central bank.
    The benchmark 10-year yield was down less than a
basis point at 0.6347% in morning trading.
    The figure was roughly at the middle of the range where the
10-year note has traded since late March and indicated investors
looking ahead to auctions of $148 billion worth of 2-year,
5-year and 7-year notes starting on Tuesday said Ben Jeffery,
BMO Capital Markets rates strategist.
    Remarks from Federal Reserve Chairman Jerome Powell
scheduled for Thursday also could shed light on the central
bank's next steps to promote an economic recovery.
    "People are probably just squaring positions ahead of the
more consequential events later this week," Jeffery said.
    Against the backdrop of a coronavirus pandemic that has
killed more than 175,000 Americans, and an ensuing recession
that has seen the loss of millions of jobs and President Donald
Trump's erosion in the polls, U.S. Republicans plan a partly
virtual, partly in-person convention this week featuring Trump 
speaking every night.
    The S&P 500 and Nasdaq were set to open at record highs on
Monday after the U.S. health regulator approved the emergency
use of blood plasma in COVID-19 patients and on a report that
the Trump administration may fast-track a vaccine
candidate.
    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 48 basis points, little changed from
Friday's close but well above its recent low of 33 basis points
reached on July 24.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was roughly
unchanged at 0.1493%.
    
      August 24 Monday 9:12AM New York / 1312 GMT
                                                      
                                                      
                                                      
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.095        0.0963    0.000
 Six-month bills               0.12         0.1217    0.003
 Two-year note                 99-244/256   0.1493    0.002
 Three-year note               99-222/256   0.1698    0.003
 Five-year note                99-230/256   0.2707    -0.001
 Seven-year note               99-120/256   0.4529    -0.002
 10-year note                  99-232/256   0.6347    -0.005
 20-year bond                  100          1.125     -0.006
 30-year bond                  100-196/256  1.3439    -0.009
                                                      
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
                                            Change    
                                            (bps)     
 U.S. 2-year dollar swap         6.75        -0.50    
 spread                                               
 U.S. 3-year dollar swap         5.75        -0.75    
 spread                                               
 U.S. 5-year dollar swap         4.25        -0.75    
 spread                                               
 U.S. 10-year dollar swap       -1.50        -1.25    
 spread                                               
 U.S. 30-year dollar swap      -38.75        -0.75    
 spread                                               
                                                      
 
 (Reporting by Ross Kerber in Boston; Editing by Will Dunham)
  

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