(Updates with market activity)
    By Ross Kerber
    BOSTON, April 2 (Reuters) - U.S. Treasuries shrugged off a
record rise in jobless claims shown in data on Thursday, leaving
yields steady as investors tried to gauge when the coronavirus
pandemic's economic impact might peak.
    The benchmark 10-year yield was down 1.6 basis
points at 0.6189% in afternoon trading. 
    That was close to where it stood at 8:30 a.m. EDT (1230
GMT), when the U.S. Labor Department reported the number of
Americans filing claims for unemployment benefits last week shot
to a record high for a second week in a row - more than 6
    More jurisdictions enforced stay-at-home measures to curb
the pandemic, which economists say has pushed the economy into
    A closely watched portion of the U.S. Treasury yield curve
measuring the gap between yields on two- and 10-year Treasury
notes was at 39 basis points, about 2 basis points higher than
Wednesday's close.   
    Major Wall Street indexes were up on hopes of a truce
between major oil producers, also helping stabilize
    Analysts contacted by Reuters said the market reaction
suggested the jobless numbers were so big that they were hard to
fit into traditional models.
    "The bad data is being priced in. We know that a large part
of the economy is shutting down, so maybe people just expected
an outlandish number," said Priya Misra, head of global rates
strategy at TD Securities in New York.
    "Now the market is more focused on the length of time the
shutdown will last," she said.
    Bond market investors are starting to absorb a growing
supply of Treasury securities meant to pay for a new $2.2
trillion federal aid package, though the exact mix of securities
the department will issue is not yet clear.
    The two-year U.S. Treasury yield was down less
than a basis point at 0.2255% in afternoon trading. It reached
as low as 0.202% overnight, its lowest level since 2013.
    However it is affected by the new Treasury supply, the yield
on the two-year typically moves in step with interest rate
expectations. The Fed has already cut its target interest rate
range to nearly zero and most analysts do not see that changing 
soon in the face of the worsening pandemic, bringing the yield
    "Barring a big uptick in inflation, it's likely they will
stay there two years," said Guy LeBas, chief fixed income
strategist for Janney Montgomery Scott. 
        April 2 Thursday 3:47PM New York / 1947 GMT
 US T BONDS JUN0               181-21/32    0-17/32   
 10YR TNotes JUN0              138-240/256  -0-12/25  
                               Price        Current   Net
                                            Yield %   Change
 Three-month bills             0.0925       0.0941    0.020
 Six-month bills               0.14         0.142     0.008
 Two-year note                 100-76/256   0.2255    -0.008
 Three-year note               100-162/256  0.2843    0.005
 Five-year note                100-144/256  0.3861    0.017
 Seven-year note               100-168/256  0.5293    0.000
 10-year note                  108-108/256  0.6189    -0.016
 30-year bond                  118-116/256  1.257     -0.032
   DOLLAR SWAP SPREADS                                
                               Last (bps)   Net       
 U.S. 2-year dollar swap        23.25        -0.50    
 U.S. 3-year dollar swap        14.75        -1.00    
 U.S. 5-year dollar swap        11.50        -1.25    
 U.S. 10-year dollar swap        4.75        -1.75    
 U.S. 30-year dollar swap      -42.25        -0.75    
 (Reporting by Ross Kerber in Boston; editing by Matthew Lewis
and Grant McCool)

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