Philippines, Singapore, Sri Lanka, South Korea: 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: The nation should steadily work toward yuan
convertibility, China Money magazine reported Aug. 3, citing
Wang Yungui, deputy director general of the Balance of Payment
Department at the currency regulator. China should improve the
system of foreign-exchange settlements and increase the currency
market's demand and supply, Wang said according the magazine.
China Development Bank plans to sell 20 billion yuan ($2.64
billion) of fixed-rate seven-year bonds this week.


Read more at Bloomberg Bonds News

UniCredit, GE to seal Poland deal-sources

(Reuters) - MILAN/BOSTON, July 31 - UniCredit and GE Money are to announce as early as this week a deal for the purchase by the U.S. group of 200 of the Italian bank's outlets in Poland, sources familiar with the matter said.



UniCredit is selling 200 bank branches belonging to its Polish unit BPH , which it wholly acquired when it bought Germany's HVB in 2005, along with the BPH brand. Analysts say the package could be worth as much as $2 billion.


Read more at Reuters.com Mergers News

TIPS, A Bad Tip on Inflation in 2006, Lose Value as Oil Closes In on $100

(Bloomberg) -- Treasury investors say inflation is
abating, even if the oil bulls are right and crude heads to $100
a barrel.

Pacific Investment Management Co. and Fidelity Investments
sold Treasury inflation-protected securities maturing next year,
confident that consumer prices will remain in check. Money
managers lost as much as $275 million on so-called TIPS in the
second half of 2006 because oil fell from record highs and
gasoline prices dropped.


Read more at Bloomberg Bonds News

Asian Energy Stocks Climb, Led by Inpex on Oil Price; China's Shares Drop

(Bloomberg) -- Asian energy stocks rose after crude-
oil prices climbed to a two-week high, bolstering expectations
for earnings growth.

``Money is heading to commodity-related shares, pushing the
level of the overall market higher,'' said Terunobu Kinoshita,
who helps manage $785 million at Fund Creation Co. in Tokyo.
``Investors should anticipate further gains.''


Read more at Bloomberg Stocks News

Fed's Lacker: Lower inflation expectations needed

(Reuters) - "Without a prompt fall in inflation expectations, a
reduction in inflation below 2 percent is likely to be
temporary and hard to sustain," he said in remarks prepared for
delivery to the Money Marketeers of New York University. A copy
of his speech was made available in advance.




Using interest rates alone would be difficult and
time-consuming, he said, adding: "One natural approach to
bringing down more expeditiously, should that be the desire,
would be a strategy of clear communications about
policy-makers' intentions," he said.


Read more at Reuters.com Bonds News