JGBs fall on BOJ rate view, short covering stalls

(Reuters) - Futures initially pulled further away from a seven-year low
as the market followed a gain in U.S. Treasuries, only to run
into selling by domestic banks, market participants said.




"A Treasury-led rise in early trade had its limitation as the
market continues to expect the BOJ to boost interest rates in
coming months," a senior trader at a European brokerage said.


Read more at Reuters.com Bonds News

Yen slides to record low against the euro

(Reuters) - The yen hit a record low versus the euro on Tuesday and was stuck near a 4-1/2-year trough against the dollar as investors kept favouring carry trades funded with the low-yielding Japanese currency. The yen has fallen across the board since Bank of Japan Governor Toshihiko Fukui said late last week he had no preconceived ideas about a future rate rise, dousing expectations of a rate increase in July.

Most market players are looking for the BOJ to raise rates to a 12-year high of 0.75 percent in August, but such a move is not expected to dull the allure of carry trades -- borrowing cheap funds in the yen to buy higher-yielding currencies.


Read more at Reuters Africa

Housing Starts in U.S. Probably Fell in May, Prolonging Slump, Survey Says

(Bloomberg) -- Housing starts in the U.S. probably
fell in May, signaling the slump in home construction will
continue to depress growth, economists said before a government
report today.

Builders broke ground on new houses at an annual rate of
1.473 million in May, down 3.6 percent from 1.528 million the
prior month, according to the median forecast of 68 economists
surveyed by Bloomberg News. Building permits probably rose to
1.47 million from a nine-year low 1.457 million in April.


Read more at Bloomberg Bonds News

Philips to buy Color Kinetics for 592 mln euros

(Reuters) - Philips is the world's biggest lighting maker, a top three
hospital equipment maker and Europe's biggest consumer
electronics producer.




Read more at Reuters.com Mergers News

Raines Says Fannie Mae Regulator Hides Details in Accounting Investigation

(Bloomberg) -- Franklin Raines, ousted as chief
executive officer of Fannie Mae in 2004, said regulators are
withholding documents that may show a deliberate attempt to drive
down the company's stock price.

The Office of Federal Housing Enterprise Oversight
``continues to guard jealously against the disclosure of
information,'' Raines said in a filing yesterday with the U.S.
District Court in Washington. Ofheo is denying access
``presumably for fear that the integrity of its own public
statements will be called into serious question,'' the filing
said.


Read more at Bloomberg Bonds News

Bernanke, Trichet Turn to BIS as Investors Ignore Warnings on Global Risk

(Bloomberg) -- Six decades ago, the U.S. Treasury
wanted to shut down the Bank for International Settlements,
saying it helped finance the Nazis. Today, Jean-Claude Trichet
and Ben S. Bernanke are transforming the organization into one
of the world's most powerful networking clubs.

With hedge funds and private equity firms pumping record
sums of money around the world economy, central bankers fret
that investors are taking on too much risk. As a result, the
bankers are increasingly turning to the Basel, Switzerland-based
BIS, the oldest international financial institution, for
research and advice, and to coordinate damage-control plans.


Read more at Bloomberg Bonds News

ICI's Cloudy Future, Alwaleed Losses, `Return of Vol': Timshel by Wilson

(Bloomberg) -- Imperial Chemical Industries Plc's
future is no clearer now that Akzo Nobel NV has begun a much-
anticipated takeover attempt.

ICI, the maker of Dulux and Glidden paints, closed 5.8
percent higher yesterday than Akzo's proposed price of 600 pence
a share. The rally showed investors agreed with the London-based
company's conclusion that the 7.2 billion pound ($14.3 billion)
offer was too low.


Read more at Bloomberg Stocks News