U.S. 30-year mortgage rates continue to fall

(Reuters) - Reports that existing home sales dropped in May as part of
what Freddie Mac calls "the current housing recession" helped
mortgage rates ease. The mortgage giant also said the market is
waiting to see if the Federal Reserve changes its monetary
policy at the conclusion of its meeting on Thursday.




"Mortgage rates edged down slightly for the second week in
a row after having risen over the previous month and a half,
and as financial markets prepared for the June 28 Federal Open
Market Committee's announcement on monetary policy," said Frank
Nothaft, Freddie Mac vice president and chief economist.


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South Korean Won Rises to Near Two-Week High on Inflows to Stock Market

(Bloomberg) -- The South Korean won advanced to near
its highest in two weeks on speculation gains in local equities
will encourage overseas investment in the nation's assets.

The won has advanced 2.5 percent over the past three months
as signs of an economic recovery helped boost Korean stocks by 21
percent this year to a record close yesterday. Reports last week
showed overseas sales rose more than expected in May and service
companies increased output at a faster pace in April.


Read more at Bloomberg Currencies News

European Government Bonds Record Weekly Drop on Signs Growth Quickening

(Bloomberg) -- European two-year notes dropped this
week as signs of expansion in the 13-nation euro region further
underpinned the case for higher interest rates.

Two-year yields held near a six-year high as investors added
to bets the European Central Bank will lift its key rate from 3.75
percent. Reports today showed European manufacturing expanded last
month and sales at retailers in Germany, the region's largest
economy, rose more than economists expected in April.


Read more at Bloomberg Bonds News

Japan's Bonds May Fall for 4th Day on Concerns Stock Gains to Dent Demand

(Bloomberg) -- Japan's government bonds fell, sending
10-year yields to the highest since February, after the Nikkei 225
Stock Average rebounded from the biggest decline in a month.

Ten-year bonds last week completed their steepest slide this
year as signs of faster growth in the U.S. tempered concerns that
demand in Japan's biggest export market will slow. Reports this
week will probably show hiring rose in the U.S. and industrial
production increased in Japan, according to Bloomberg News surveys.


Read more at Bloomberg Bonds News