 Longer-term U.S. Treasury yields tickedhigher on Tuesday as positive economic reports raised hopes of aswift recovery despite the continued COVID-19 pandemic. The benchmark 10-year yield was up less than abasis point in afternoon trading at 0.7102. The activity mirrored equities trading, with Wall Streetsmain indexes higher. White House trade adviser Peter Navarrowalked back on his earlier remarks that the U.S.-China tradepact was over, which had stoked market volatility. The price action reflects an equilibrium between a Fed thatcan still do more on rates if it wanted and an economy that isstarting to get back on its feet, said BMO Capital Marketsrates strategist Ben Jeffery. Sales of new U.S. single-family homes increased 16.6 inMay, more than expected, to a seasonally adjusted annual rate of676,000 units. Also the pace of contraction in the U.S. manufacturing andservices sectors slowed in June as businessesreopened. Non-dealer bids were accepted for 69 of an auction oftwo-year notes, according to results posted by the U.S. TreasuryDepartment on Tuesday afternoon, higher than the average of66.4, according to BMO, and indicating solid demand. Jim Barnes, director of fixed income at Bryn Mawr Trust,said Tuesdays trading suggested investors were more focused onthe economy than on public health news. The market is starting to trade a little bit on some ofthose factors that were influencing the markets before COVID-19,some of the geopolitical issues and trade issues, he said A closely watched part of the U.S. Treasury yield curvemeasuring the gap between yields on two- and 10-year Treasurynotes, seen as an indicator of economicexpectations, was at 52 basis points, about a basis point higherthan Mondays close. The two-year U.S. Treasury yield, whichtypically moves in step with interest rate expectations, wasunchanged at 0.1918. June 23 Tuesday 2:11PM New York 1811 GMT Price US T BONDS SEP0 176-3132 -0-1032 10YR TNotes SEP0 138-180256 0 Price Current Net Yield Change bps Three-month bills 0.15 0.1521 -0.008 Six-month bills 0.1725 0.175 -0.003 Two-year note 99-223256 0.1918 0.000 Three-year note 100-24256 0.2184 -0.006 Five-year note 99-160256 0.3267 -0.008 Seven-year note 99-192256 0.5368 0.000 10-year note 99-48256 0.7102 0.006 20-year bond 97-232256 1.2441 0.016 30-year bond 94-100256 1.483 0.021 DOLLAR SWAP SPREADS Last bps Net Change bps U.S. 2-year dollar swap 6.00 0.00 spread U.S. 3-year dollar swap 4.25 0.25 spread U.S. 5-year dollar swap 3.75 0.25 spread U.S. 10-year dollar swap -1.75 0.00 spread U.S. 30-year dollar swap -49.25 0.25 spread Reporting by Ross Kerber in Boston and by Chuck Mikolajczak inNew YorkEditing by Nick Zieminski and Sonya Hepinstall 