TREASURIES-Prices soft to near flat ahead of Fed decision on rates
* U.S. 3-, 10-year note auctions show mixed results * NY City bombing attempt prompts safe-haven buying earlier * Fed expected to raise interest rates on Wednesday * Inflation data on Wednesday key data focus (Recasts; updates prices, adds comment, table) By Gertrude Chavez-Dreyfuss and Karen Brettell NEW YORK, Dec 11 (Reuters) - U.S. Treasury debt prices were little changed on Monday after rallying earlier in the session on safe-haven buying following an explosion in midtown Manhattan which New York Mayor Bill de Blasio described as an "attempted terrorist attack." The U.S. Treasury Department held two auctions - three-year and 10-year notes - that showed mixed results. Both elicited little market reaction, however. Overall investors were hesitant to extend current positions ahead of the U.S. 30-year bond supply and the Federal Reserve's monetary policy decision on Wednesday, said Tom Simons, money market economist at Jefferies in New York. The Fed is widely expected to raise interest rates this week and is likely to upgrade its U.S. economic forecasts given the recent spate of upbeat data. Fed funds futures are also pricing in about a 60 percent implied chance for a March rate increase. Treasuries rallied earlier after a Bangladeshi man with a homemade bomb strapped to his body set off an explosion at a New York commuter hub during rush hour on Monday. The suspect, who is currently in police custody, had burns and lacerations while three other people, including a police officer, sustained minor injuries. The buying of Treasuries made the U.S. three- and 10-year notes more expensive going into their auctions, Jefferies' Simons said. The Treasury's $24 billion three-year note sale was well received, with the note fetching a high yield of 1.932 percent, lower than market expectations of 1.935 percent at the bid deadline. The $20-billion U.S. 10-year note, however, was lackluster. The yield was at 2.384 percent, higher than market expectations of a yield of 2.380 percent. U.S. benchmark 10-year Treasury note yields fell as low as 2.35 percent on safe-haven demand before they retraced back to 2.386 percent by afternoon trading. U.S. 30-year bond yields were last at 2.773 percent , slightly down from 2.775 percent late on Friday. Three-year note yields rose to 1.940 percent, up from Friday's 1.915 percent. The U.S. Treasury will sell $12 billion in 30-year bonds on Tuesday. Consumer Price Index data on Wednesday is also a key focus for the market this week as inflation continues to run below Federal Reserve forecasts. Monday, Dec. 11 at 1519 EST (2019 GMT): Price US T BONDS MAR8 153 0-4/32 10YR TNotes MAR8 124-60/256 -0-8/256 Price Current Net Yield Change (pct) (bps) Three-month bills 1.2725 1.2941 0.010 Six-month bills 1.4175 1.4473 0.002 Two-year note 99-218/256 1.827 0.028 Three-year note 99-118/256 1.9403 0.025 Five-year note 99-66/256 2.1583 0.013 Seven-year note 98-224/256 2.3006 0.005 10-year note 98-204/256 2.3868 0.004 30-year bond 99-140/256 2.7723 -0.003 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 18.50 -1.25 spread U.S. 3-year dollar swap 16.75 -1.25 spread U.S. 5-year dollar swap 6.25 0.25 spread U.S. 10-year dollar swap 1.00 0.25 spread U.S. 30-year dollar swap -20.00 0.50 spread (Reporting by Gertrude Chavez-Dreyfuss and Karen Brettell; Editing by James Dalgleish)