(Updates with market activity, analyst comment, auction
    By Karen Pierog and Ross Kerber
    CHICAGO/BOSTON, April 28 (Reuters) - Traders looking for
stronger indications of the economy's path through the COVID-19
pandemic sent U.S. Treasury yields lower on Tuesday.
    The benchmark 10-year yield was last down 4.4
basis points at 0.6098%.
    "The market's just erasing some of yesterday's
underperformance," said Justin Lederer, Treasury analyst at
Cantor Fitzgerald in New York, referring to Monday's trading
session when yields were higher as investors sold
    He added that the market seems range-bound despite the surge
of supply heading its way as the U.S. government finances costly
stimulus measures. 
    "We go up a few days, we go down. We steepen. We flatten.
But net net it's kind of been just hovering around these levels
even with increased supply and the (Federal Reserve) tapering
purchases," Lederer said. 
    Relatively strong demand for 7-year notes at a midday
auction sent a similar message, he said.
    The U.S. central bank is slowly reducing its purchases of
Treasuries to an average of $15 billion per day last week from a
peak of $75 billion per day from March 19 to April 1.

    The Fed on Tuesday begins its two-day policy meeting with
little ability to judge where an economy battered by the
coronavirus outbreak is headed.    
    The central bank could begin to clarify how long it intends
to leave rates near zero and could offer a glimpse of how the
policy-setting Federal Open Market Committee feels the economy
will evolve.
    The two-year U.S. Treasury yield, which typically
moves in step with interest rate expectations, was last down 2.1
basis points at 0.2092%.
    April 28 Tuesday 3:06PM New York / 1906 GMT
 US T BONDS JUN0               181-28/32    1-10/32   
 10YR TNotes JUN0              139-4/256    0-92/256  
                               Price        Current   Net
                                            Yield %   Change
 Three-month bills             0.105        0.1068    -0.020
 Six-month bills               0.1375       0.1395    -0.020
 Two-year note                 99-213/256   0.2092    -0.021
 Three-year note               99-244/256   0.2659    -0.024
 Five-year note                100-10/256   0.3671    -0.040
 Seven-year note               100-188/256  0.5168    -0.041
 10-year note                  108-116/256  0.6098    -0.044
 30-year bond                  119-216/256  1.2053    -0.044
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
 U.S. 2-year dollar swap        14.00        -1.00    
 U.S. 3-year dollar swap         8.25        -0.25    
 U.S. 5-year dollar swap         5.50        -0.50    
 U.S. 10-year dollar swap        0.50        -1.00    
 U.S. 30-year dollar swap      -44.00        -0.50    
 (Reporting by Karen Pierog in Chicago and by Ross Kerber in
Boston; Editing by Sandra Maler and Jonathan Oatis)

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