TREASURIES-Bonds still down after existing homes data

(Reuters) - The benchmark 10-year note's price traded down 5/32 for a
yield of 4.93 percent , versus 4.93 percent before
the report and compared with 4.91 percent late on Tuesday. Bond
yields and prices move inversely.




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Early CPDOs far riskier than ratings imply-UBS

(Reuters) - Last week Fitch Ratings and Dominion Bond Rating Service,
neither of which have rated CPDOs, said that the early deals
may be highly sensitive to small changes in the assumptions
underlying them. For details, see [ID:nL18292745]




"We think that early CPDOs, the ones that were introduced
last summer and fall, have a very fundamental problem with
them," said Anthony Morris, executive director in structured
products research at UBS on a conference call on Monday.


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Treasuries Attract Cash-Flush Pension Funds Loaded With Stock Market Gains

(Bloomberg) -- Treasuries are getting an unexpected
boost from pension funds controlling more than $14 trillion.

Fund managers for companies including General Motors Corp.
and Alcatel-Lucent are shifting away from stocks to prepare for
accounting changes requiring them to more fully disclose the
value of their holdings. Bonds are gaining favor as funds seek
to avoid wider swings in prices that may accompany equities as
the new rules take effect, possibly later this year.


Read more at Bloomberg Bonds News

Japan's Bond Futures Advance After Downgrades of U.S. Subprime-Backed Debt

(Bloomberg) -- Japan's 10-year bond futures rose in
the past week after downgrades of debt backed by U.S. subprime
mortgages sparked demand for the safety of government securities.

Bond futures on July 11 had the biggest gain since August
after Moody's Investors Service cut ratings on $5.2 billion of
debt backed by loans to homeowners with poor credit histories.
Concern economic growth in the U.S., Japan's largest export
market, will slow helped bond futures rebound from the steepest
weekly drop since last month.


Read more at Bloomberg Bonds News

European Bonds Decline for Second Day on Stocks, Interest-Rate Outlook

(Bloomberg) -- European government bonds fell for a
second day as a surge in global equity markets eroded demand for
less risky assets, and on speculation the European Central Bank
will keep raising interest rates.

The drop in debt pushed 10-year yields up from near the
lowest in a week, as concern waned that the downgrading of
subprime mortgage-backed bonds in the U.S. may crimp growth in
the wider economy. Bonds also fell as traders bet the European
Central Bank will keep lifting borrowing costs to curb inflation.


Read more at Bloomberg Bonds News

European Government Bonds Gain on Signs German, French Growth Is Slowing

(Bloomberg) -- European government bonds advanced
for a second day as signs of slowing growth in the euro region's
two biggest economies prompted investors to pare bets the
European Central Bank will raise interest rates again this year.

Ten-year bonds rose, pushing yields down from near a five-
year high, as reports showed German wholesale prices grew at the
slowest pace for two years in June and French manufacturing
declined in May for the first time in six months. Bonds were also
buoyed by speculation yields already reflect the prospects of
further rate increases by the ECB.


Read more at Bloomberg Bonds News

European Government Bonds Head for Weekly Decline on Outlook for ECB Rates

(Bloomberg) -- European government bonds are set to
drop this week, extending the worst quarterly slide in almost
eight years, after European Central Bank President Jean-Claude
Trichet signaled policy makers may need to lift interest rates
further by year-end.

Benchmark debt has fallen, sending 10-year bund yields to
near a five-year high, as investors add to bets the ECB will lift
borrowing costs half a point by year-end. Bonds fell yesterday
after Trichet said inflation in the region needs ``careful
monitoring.'' The ECB earlier kept its key rate at 4 percent.


Read more at Bloomberg Bonds News

Japanese Government Bonds May Fall on Signs of Stronger U.S. Job Growth

(Bloomberg) -- Japanese bonds may fall for a third
day after private U.S. reports showed job creation was faster
than expected and growth in service industries unexpectedly
accelerated, signaling the world's largest economy will expand.

Bonds in Japan may follow a slump yesterday in 10-year U.S.
Treasuries, which had the biggest loss in three weeks. A Labor
Department report today may add to expectations that stronger
employment growth will boost U.S. inflation. A faster expansion
in the U.S., Japan's biggest export market, may help the Asian
nation sustain its longest period of postwar economic growth.


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Parmalat must defend US investor class-action suit

(Reuters) - The ruling is a defeat for the Italian dairy company and
Chief Executive Enrico Bondi. Both have been trying to distance
themselves from prior management, and are seeking billions of
dollars of damages from the company's former bankers.




Parmalat had filed Europe's largest bankruptcy under about
14 billion euros of debt, after uncovering a 4
billion euro hole in its accounts.


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South Africa's Rand Reaches Six-Week High on Outlook for Interest Rates

(Bloomberg) -- South Africa's rand rose for a fourth
day, touching its highest in six weeks, on speculation the
country's relatively high rates will keep luring investors
looking for yield.

Foreign investors bought 728 million rand ($103.8 million)
more than they sold of the country's bonds June 29, reversing net
sales of 706 million rand the previous day, according to the Bond
Exchange of South Africa. The rand had risen as the gap in yield
between South African benchmark 10-year debt and similar maturity
Treasuries widened more than 30 points in the past month.


Read more at Bloomberg Currencies News

Japan's 10-Year Government Bonds Rise a Fourth Day as Stocks Extend Slide

(Bloomberg) -- Japan's 10-year bonds rose for a
fourth day, the longest rally in more than three months, on
speculation a drop in shares will spur demand for debt.

The yield on the 1.8 percent bond due in June 2017 fell 1.5
basis points to 1.86 percent as of 9:42 a.m. in Tokyo at Japan
Bond Trading Co., the nation's largest interdealer debt broker.
A basis point is 0.01 percentage point.


Read more at Bloomberg Bonds News

Malaysian Government Bonds to Account for 0.4% of Citigroup's Global Index

(Bloomberg) -- Malaysian bonds will make up about
0.4 percent of Citigroup Inc.'s World Government Bond Index, a
benchmark tracked by some $1 trillion of global funds, the
world's biggest financial firm said.

Malaysia's ringgit-denominated government debt will be
included in the index for the first time as scheduled on July 1,
according to Susan Y. Lin, head of the bond index team in Hong
Kong. A total of $39.6 billion of Malaysia's securities qualify
for inclusion in the benchmark based on June 22 prices, she said.


Read more at Bloomberg Bonds News

Taiwan Dollar Rises After Rate Increase; Bonds Gain as Debt Sales Reduced

(Bloomberg) -- Taiwan's dollar rose to near the
highest in more than five months after a bigger-than-expected
interest-rate increase last week boosted the allure of local-
currency assets. Bonds gained.

The currency advanced for a fifth day after the central
bank raised its key rate a quarter percentage point to 3.125
percent on June 21. The increase was twice as much as expected,
according to Bloomberg News survey. The gain in the local dollar
in the past 10 days has reduced this year's loss to 0.4 percent.


Read more at Bloomberg Bonds News

Prices flat, rate and fund worries linger

(Reuters) - Given the lack of major economic reports, Treasuries will likely take directions from stocks, oil and overseas debt, analysts said.




Bond prices retreated from overseas gains tied to stronger Bunds in reaction to a surprising weak reading of German business confidence in June.


Read more at Reuters.com Hot Stocks News

JGBs extend losses after weak 20-yr auction demand

(Reuters) - Bonds extended losses after an 800 billion yen offer of
20-year JGBs by the Ministry of Finance met with slightly weak
demand as investors remained wary that interest rates will
continue to rise.




"The results were neither good or bad, but the tail was bit
wide," said Akihiko Inoue, market analyst at Mizuho Investors
Securities.


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TREASURIES-Bond prices slip in line with euro zone debt

(Reuters) - The benchmark 10-year note's price slipped 5/32 for a yield
of 5.11 percent , compared with 5.09 percent late on
Tuesday. Bond yields and prices move inversely.




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Louisiana council OKs Valero project bonds--report

(Reuters) - Valero plans to decide later this year if it will go forward with the
expansion.




The bonds must also be approved by the State Bond Commission.


Read more at Reuters.com Bonds News

Treasury Bear Market, Worst Since 1999, Muffled by Reserves, Derivatives

(Bloomberg) -- The steepest decline in Treasuries
since 2004 is convincing even the most bullish investors that U.S.
government bonds are now in a bear market.

Bill Gross, the manager of the world's biggest bond fund at
Pacific Investment Management Co., and Dan Fuss, whose Loomis
Sayles Bond Fund has been the best performer among its peers the
last decade, are preparing for higher market rates after yields
on 10-year Treasuries, the benchmark for home mortgages and
corporate borrowing, rose to a five-year high last week.


Read more at Bloomberg Bonds News

Bonds fall on mortgage selling, oil's surge

(Reuters) - Treasuries gave up the gains that resulted from Asian buying and benign comments on inflation by Chicago Federal Reserve President Michael Moskow as bids were awarded for the $4 billion sale of mortgage bonds by a Bear Stearns hedge fund, analysts said.




Bonds also were hurt by a surge in U.S. crude oil futures to a nine-month high, which added to lingering inflation worries.


Read more at Reuters.com Hot Stocks News

TREASURIES-Bonds fall after U.S. retail sales, import prices

(Reuters) - The benchmark 10-year note's price fell 5/32 for a yield of
5.32 percent , versus 5.28 percent before the data
and compared with 5.29 percent late on Tuesday. Bond yields and
prices move inversely.




Read more at Reuters.com Bonds News