TREASURIES-Yields mixed after 30-year bond auction, Fed minutes

(New throughout, updates yields, market activity and comments, adds bond auction, spread, repo operation) By Karen Pierog CHICAGO, April 8 (Reuters) - U.S. Treasury yields were mixed on Wednesday following an auction of 30-year bonds that was better received than note auctions earlier this week and the release of minutes from the Federal Reserve's March meeting The yield on the benchmark U.S. 10-year note was up 4 basis points at 0.7738%. Andrew Richman, managing director of fixed income at Truist/SunTrust Advisory Services, called the minutes, which focused on economic fallout from the coronavirus and an interest rate cut, "largely old news." "The bond market is still saying rates are going to stay low for a long time and the Fed is going to have to do more interventions, so more buying of bonds," he said. In market updates, interest rate analysts said the auction of $17 billion of 30-year bonds was strong. It followed auctions this week for $25 billion of 10-year notes and $40 billion of three-year notes and a call for greater federal spending to fight the virus outbreak and limit economic damage. On Wednesday, Democratic leaders in the U.S. Congress announced they would back the Trump Administration's request to send another $250 billion in aid to small businesses, but they want the legislation to include billions of dollars more for healthcare providers, state and local governments and food assistance. That would add to a debt deluge to finance the $2.3 trillion CARES Act aimed at mitigating economic damage from the virus. "We are going to get staggering amount of supply," said Subadra Rajappa, head of U.S. rates strategy at Societe Generale in New York. "I think there's a little bit of skittishness around what that might mean for yields over the longer run." The yield on the 30-year bond was last up 4.7 basis points at 1.3771%. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was at 0.2619%, down 2 basis points. 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 at 50.30 basis points. That was about 6 basis points higher than at Tuesday's close, and the highest since late March. Bids submitted in a Wednesday morning overnight repurchase agreement (repo) operation totaled $3.55 billion with $2.9 billion backed by mortgage-backed securities and $650 million backed by Treasuries, according to the New York Federal Reserve, which said it accepted all the bids. In a one-day repo operation Wednesday afternoon, $7.45 billion of bids were submitted and accepted. April 8 Wednesday 2:11PM New York / 1911 GMT Price Current Net Yield % Change (bps) Three-month bills 0.1975 0.2009 0.051 Six-month bills 0.2325 0.2367 0.026 Two-year note 100-57/256 0.2619 -0.020 Three-year note 99-182/256 0.347 -0.021 Five-year note 100-28/256 0.4777 -0.005 Seven-year note 99-192/256 0.6617 0.019 10-year note 106-224/256 0.7738 0.040 30-year bond 115-52/256 1.3771 0.047 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap 25.00 0.75 spread U.S. 3-year dollar swap 15.75 1.00 spread U.S. 5-year dollar swap 13.00 1.25 spread U.S. 10-year dollar swap 5.25 0.50 spread U.S. 30-year dollar swap -37.75 1.50 spread (Reporting by Karen Pierog in Chicago. Additional reporting by Ross Kerber in Boston Editing by Nick Zieminski and David Gregorio)