TREASURIES-Extend gains in Asia, market eyes Fed

(Reuters) - "Yields of Treasuries have fallen sharply, but investors
don't seem to be cautious about prices going too high amid
safe-haven rallies," said Ryuji Shimazu, a market analyst at
Shinko Securities.




"Market players seem to be building positions for possible
Fed rate cuts in the future."


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Taiwan Government Bonds Climb as Stock Losses Spur Demand; Currency Falls

(Bloomberg) -- Taiwan's 10-year government bonds
advanced on speculation a decline in stocks prompted investors to
seek the safety of debt's fixed income. The currency weakened.

Yields, which move inversely to prices, were the lowest in
three weeks on concern defaults on U.S. subprime mortgages are
spreading to the broader economy. Regional equity markets fell,
with the island's Taiex index of shares dropping as much as 2.1
percent.


Read more at Bloomberg Bonds News

TREASURIES-Short-term yields head for biggest drop in 3 yrs

(Reuters) - Yields on the benchmark 10-year note were down about 11
basis points at 4.80 percent, and headed for their largest
one-day retreat since a big stock market rout back in late
February.




Read more at Reuters.com Bonds News

China, India, Indonesia, South Korea, Sri Lanka: Asia Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The Agricultural Development Bank of China on July
17 sold 10 billion yuan ($1.32 billion) of five-year floating
rate notes. The interest rate was based on the current one-year
deposit rate of 3.06 percent plus an auctioned spread of 73
basis points. The bank will auction another 10 billion yuan of
one-year fixed rate notes next week. Major economic data in June,
including the consumer prices index, will be released today,
according to the Bureau of Statistics.


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US STOCKS-Futures flat as rate worries offset M&A

(Reuters) - NEW YORK, July 5 - Wall Street was set to open
little changed on Thursday as rising bond yields fueled concern
about higher borrowing costs, offsetting news of a $20 billion
buyout of Hilton Hotels Corp.




Yields rose after stronger-than-expected data on the jobs
market gave a boost to forecasts for Friday's non-farm payrolls
report. The yield on the benchmark 10-year Treasury note
rose to 5.10 percent from 5.05 percent late on
Tuesday.


Read more at Reuters.com Bonds News

Indonesia, Malaysia, Sri Lanka, Taiwan, Thailand: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: China's Agricultural Development Bank, one of the
nation's three policy banks, will sell 10 billion yuan ($1.32
billion) of floating-rate three-year notes on July 6. The debt
will carry an interest rate of the one-year deposit rate plus a
spread that is to be auctioned. The central bank last month
raised the benchmark one-year deposit rate to 3.06 percent from
0.27 percentage point.


Read more at Bloomberg Bonds News

India, Indonesia, Malaysia, Sri Lanka, Thailand: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence Asian local-currency bonds today. Yields
are from the previous session.

China: Investments by Chinese insurers in stocks and debt
soared 53 percent in the first five months of 2007 from a year
earlier to 1.5 trillion yuan ($197 billion), according to a
statement published on the China Insurance Regulatory
Commission's Web site on June 27. The central bank yesterday
sold 1 billion yuan of three-year bills at a yield of 3.49
percent yield, the same as the previous auction a week earlier.


Read more at Bloomberg Bonds News

European Government Bonds Gain as Global Growth, Inflation Concerns Ease

(Bloomberg) -- European government bonds advanced
for a fourth day, the longest winning run in almost four months,
as investors switched from riskier assets into safer fixed-income
securities.

Yields on 10-year bunds, Europe's benchmark, fell to the
lowest in two weeks as investors turn more risk averse amid
concern a declining housing market and losses related to subprime
mortgages in the U.S. will hurt global growth. Debt also gained
as European equity markets slid for a fifth day.


Read more at Bloomberg Bonds News

India, Philippines, Taiwan, Singapore, Thailand: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: State-owned Agricultural Development Bank will sell
10 billion yuan ($1.3 billion) of five-year bonds today. The
central bank yesterday sold 12 billion yuan of one-year bills at
a yield of 3.09 percent, the same yield as the previous five
weeks.


Read more at Bloomberg Bonds News

Goldman's O'Neill Says BOJ Should Increase Rates Regardless of Inflation

(Bloomberg) -- The Bank of Japan should raise
interest rates gradually even if there is no sign of inflation,
said Jim O'Neill, head of global economic research at Goldman,
Sachs Group Inc.

Yields on benchmark 10-year Japanese bonds have climbed more
than a quarter-percentage point since May 17, when BOJ Governor
Toshihiko Fukui said the bank can raise rates even if consumer
prices are falling, as long as it's confident about the outlook
for the economy. A report last week showed growth expanded more
than the government's initial estimate in the first quarter.


Read more at Bloomberg Bonds News

India, Indonesia, South Korea, Sri Lanka, Taiwan: Asia Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The government will sell as much as 15 billion yuan
($1.96 billion) of two-year savings bonds at a yield of 3.42
percent on June 11. Manufacturing activity rose the most in more
than two years in May, a report showed on June 1. The Purchasing
Managers' Index climbed to 54.1 from 53.3 in April, according to
Hong-based CLSA Asia Pacific Markets.


Read more at Bloomberg Bonds News