Malaysian Ringgit Declines After U.S. Subprime Concern Spurs Risk Aversion

(Bloomberg) -- Malaysia's ringgit fell for a third
day on speculation losses related to U.S. subprime mortgages and
hedge funds will keep global investors away from emerging-market
assets. Bonds dropped.

The local currency headed for its biggest drop in a week
after losses reported by Bear Stearns Cos. hedge funds spurred
safe-haven demand for U.S. Treasuries. The risk premium on
emerging-market bonds widened to the highest in more than a week.


Read more at Bloomberg Currencies News

Hedge funds eye Mexico amid US subprime woes

(Reuters) - Some international investors, who previously shunned the
Mexican mortgage market because of its relatively small size,
are beginning to buy in, with issues paying yields as much as 2
percentage points above comparable U.S. Treasuries.




"We've seen stronger interest in the Mexican market from
some international investors now that we've seen some adverse
outcomes in the U.S. subprime market," said Luis Arce, chief
financial officer of New York hedge fund Christofferson, Robb
and Company, which manages $1.5 billion of assets.


Read more at Reuters.com Bonds News

Treasuries Set for Biggest Weekly Drop in Month as U.S. Companies Add Jobs

(Bloomberg) -- U.S. Treasuries are headed for the
biggest weekly decline in a month before a government report
that economists forecast will show jobs growth is strong enough
to keep the Federal Reserve from cutting interest rates.

Benchmark 10-year yields traded near the highest in two
weeks after private reports yesterday showed U.S. employment
gained and growth in services quickened. Economic indicators
have been ``robust,'' including ``steadily'' increasing
payrolls, Janet Yellen, head of the Fed Bank of San Francisco,
said in a speech via satellite to a conference in Singapore.


Read more at Bloomberg Bonds News

Emerging debt-Spreads tighten over 10 bps in empty market

(Reuters) - Emerging debt bond returns fell 0.26 percent on JP Morgan's
EMBI+ index , while the Brazilian global bond due 2040
, the most liquid of its asset class, slipped
0.375 points to be bid 131.188.




But that was not enough to catch up with a sharp fall in
U.S. Treasuries prices, which sent yields on the benchmark
10-year Treasury notes jumping to more than 5.15
percent from 5.04 percent at the July 3 close.


Read more at Reuters.com Bonds News

Japan's Government Bonds Rise After Terror Concerns Spur Flight to Safety

(Bloomberg) -- Japan's government bonds gained after
terrorist plots in the U.K. spurred demand for the relative
safety of government debt in the U.S. and Europe.

Local bonds followed an advance in U.S. Treasuries, which
rose yesterday on speculation over potential terror threats and
weakness in the subprime mortgage market. Ten-year Treasury
yields, which yesterday dropped below 5 percent for the first
time in three weeks, had a 0.87 correlation with Japanese yields
in the past year, according to data compiled by Bloomberg.


Read more at Bloomberg Bonds News

U.S. 10-Year Notes Fall on Speculation Fed May Keep Anti-Inflation Tilt

(Bloomberg) -- U.S. Treasuries fell on speculation
Federal Reserve policy makers will reiterate that inflation is
the biggest risk to the economy when they finish meeting today.

All 113 economists surveyed by Bloomberg News predict the
Fed will keep its key rate at 5.25 percent for an eighth time,
leaving Treasury yields below the central bank's benchmark. The
difference in yields between two and 10-year notes narrowed to
the least in more than a week on speculation inflation will ease.


Read more at Bloomberg Bonds News

Treasuries Little Changed; Durable Goods May Reduce Outlook for Inflation

(Bloomberg) -- U.S. Treasuries were little changed
before a government report that economists say will show
durable goods orders fell in May, sending a gauge of inflation
expectations to the lowest this month.

A decline in orders may provide further evidence the economy
is slowing enough for the Federal Reserve to cut interest rates,
after consumer confidence dropped in June to the lowest since
August. Reports this week also showed the slump in the housing
market may keep inflation, which erodes the fixed payments on
bonds, within the central bank's desired zone.


Read more at Bloomberg Bonds News

Indonesia Rupiah Gains on Investors' Risk Appetite: World's Biggest Mover

(Bloomberg) -- Indonesia's rupiah had its biggest
advance in more than a year as overseas investors returned to
the country's financial markets. Bonds rose.

The rupiah gained 1.6 percent, the biggest fluctuation of
any major currency, as the Jakarta Composite Index of stocks
rose as much as 0.8 percent to a record. The Philippine peso and
Malaysian ringgit also rose as a rebound in U.S. Treasuries gave
investors confidence to invest in emerging markets.


Read more at Bloomberg Currencies News

U.S. Treasuries Decline, Resuming Six-Week Slump, Before Inflation Reports

(Bloomberg) -- U.S. Treasuries fell, resuming a
six-week slump, before government reports that will probably
show faster inflation.

The spread between 10-year and two-year yields has widened
to 14 basis points, from 2 basis points at the start of the
month. The Labor Department may say producer prices excluding
food and energy costs increased 0.2 percent in May from a month
earlier, after being unchanged in April, according to a
Bloomberg News survey of economists.


Read more at Bloomberg Bonds News

JGBs tumble, hurt by losses in Treasuries

(Reuters) - An unexpected rate hike by New Zealand a day after the
European Central Bank hiked rates to curb price pressure ignited
fears of tighter monetary policy worldwide, intensifying a
sell-off in U.S. Treasuries on Thursday.




The benchmark 10-year JGB yield spiked up to a fresh 10-month
high above 1.9 percent while benchmark euroyen futures fell to a
decade low.


Read more at Reuters.com Bonds News

UPDATE 1-Pimco's Gross says he's now a "bear market manager"

(Reuters) - NEW YORK, June 7 - Long-time bond bull Bill
Gross, just a year after declaring the end of the bear market
for U.S. Treasuries, on Thursday conceded the snappy pace of
global economic growth will likely keep bonds on their heels.




Furthermore, Gross forecast that benchmark Treasury yields
will range higher than previously thought, prompting him to
acknowledge he is now a "bear market manager" after a quarter
of a century as the global bond market's most powerful bull.


Read more at Reuters.com Bonds News

JGB futures down but hold above 10-month low

(Reuters) - JGBs have been sold off since late May amid a steady rise in
yields on euro zone government bonds and U.S. Treasuries, and as
solid Japanese data reinforced the view that the Bank of Japan
could hike rates as early as August.




After the two-year yield scaled a 10-year high above 1
percent and the five-year yield hit an 11-month high, traders
said they were looking at stock markets and global yields for
clues on whether these maturities, which are most sensitive to
monetary policy changes, could be sold further.


Read more at Reuters.com Bonds News

U.S. Treasuries Rise as Yields Near Nine-Month High Attract Investors

(Bloomberg) -- U.S. Treasuries rose as yields near
the highest in more than nine months attracted investors after
more than four weeks of losses.

The two-year security's yield touched 5 percent yesterday
for the first time since August as futures traders reversed bets
the Federal Reserve would lower interest rates this year. Sandra
Pianalto, president of the Fed's Cleveland Bank, said U.S.
inflation is faster than she'd like.


Read more at Bloomberg Bonds News

TREASURIES-Stock slide fuels tentative rebound in bonds

(Reuters) - NEW YORK, June 6 - U.S. Treasuries rose
moderately on Wednesday as sagging stock markets helped stem a
month-long selling spree that has taken yields within a sliver
of 5 percent.




Wall Street opened lower in the wake of overseas losses,
helping government debt gain a foothold.


Read more at Reuters.com Bonds News

GLOBAL MARKETS-Stocks test peaks despite China fall, dlr firm

(Reuters) - U.S. Treasuries remained under pressure after Friday's strong non-farm payrolls data further dampened expectations of interest rate cuts from the Federal Reserve this year, while technical problems disrupted early bond trading in Europe.




Chinese stocks ended down 8.3 percent, extending last week's 4.3 percent fall, as investors continued to fret about a hike in stock-trading tax -- the latest move by authorities to cool a market that had nearly tripled in value in the past year.


Read more at Reuters.com Economic News

U.S. Treasuries Little Changed on Increase in Employment Growth During May

(Bloomberg) -- U.S. Treasuries were little changed
after a government report showed the economy created more jobs in
May than economists forecast.

The yield on the benchmark 10-year note fell 1 basis point,
or 0.01 percentage point, to 4.88 percent at 8:37 a.m. in New
York, according to bond broker Cantor Fitzgerald LP. The price of
the 4 1/2 percent security due May 2017 increased 3/32, or 94
cents per $1,000 face amount, to 97 1/32. Bond prices move
inversely to yields.


Read more at Bloomberg Bonds News

Treasury 10-Year Yield at 2007 High on Chicago Business Index Increase

(Bloomberg) -- U.S. Treasuries fell the most in
almost two weeks, pushing the benchmark 10-year note's yield to
its highest level of this year, after a measure of business
activity rose more than forecast in May.

Expectations the Federal Reserve will cut interest rates
this year fell to the lowest since last July as the National
Association for Purchasing Management-Chicago report indicated
the economy is rebounding from a first-quarter slowdown. U.S.
equities extended an advance that yesterday pushed the Standard &
Poor's 500 Index to a record.


Read more at Bloomberg Bonds News

US HIGH YIELD-Spreads at record low but concerns mount

(Reuters) - Average junk bond yields fell to 242 basis points more than
U.S. Treasuries on Tuesday, down from a recent high of 299
basis points on March 5, according to Merrill Lynch data.




The previous record low spread of 244 basis points was set
in 1997 and was matched last Wednesday, according to Merrill
Lynch.


Read more at Reuters.com Bonds News

Treasuries Halt Five Days of Losses as Higher Yields Spur Investor Demand

(Bloomberg) -- U.S. Treasuries snapped a five-day
decline on speculation 10-year yields at their highest in a
month will lure some investors.

The yield on the benchmark 10-year securities climbed to
4.76 percent yesterday, a level seen only three times in the
past three months. Two-year yields touched 4.78 percent today,
the highest since February.


Read more at Bloomberg Bonds News