TREASURIES-Longer-term yields rise as risk appetite improves

By Karen Pierog CHICAGO, Nov 24 (Reuters) - U.S. Treasury yields on the longer end of the curve inched higher on Tuesday with the stock market poised to open stronger and ahead of a seven-year note auction. The benchmark 10-year yield was last up 1.1 basis points at 0.8701%. Ben Jeffery, a strategist at BMO Capital Markets in New York, said Treasuries were in a wait-and-see mode ahead of the auction and the release of consumer confidence data. "The latest news on the presidential transition as well could probably be credited for some of the modest risk-on pricing," he said. Stock futures rose after Monday's formal go-ahead for President-elect Joe Biden's transition process to begin. Following auctions of two- and five-year notes on Monday, the U.S. Treasury will offer $56 billion of seven-year notes later on Tuesday. "Generally speaking, it should go well within these trading parameters," Jeffery said. Also up for auction are $24 billion of two-year floating-rate notes. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was last down less than a basis point at 0.1602%. 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 last at 70.20 basis points, about 1.4 basis points higher than Monday's close. November 24 Tuesday 9:06AM New York / 1506 GMT Price Price Current Net Yield % Change (bps) Three-month bills 0.09 0.0915 0.002 Six-month bills 0.09 0.0913 0.000 Two-year note 99-238/256 0.1602 -0.009 Three-year note 100-28/256 0.2131 -0.008 Five-year note 99-234/256 0.3924 -0.003 Seven-year note 99-20/256 0.6362 0.002 10-year note 100-12/256 0.8701 0.011 20-year bond 99-240/256 1.3786 0.017 30-year bond 100-252/256 1.5836 0.021 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 9.25 0.75 spread U.S. 3-year dollar swap 8.50 1.00 spread U.S. 5-year dollar swap 6.25 -0.25 spread U.S. 10-year dollar swap -0.75 -0.25 spread U.S. 30-year dollar swap -32.00 -0.25 spread (Reporting by Karen Pierog; editing by Jonathan Oatis)