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

China, India, Indonesia, Sri Lanka, 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: U.S. Treasury Secretary Henry Paulson, rejecting
claims in the U.S. Congress that he's too soft on China, said
negotiations rather than sanctions have led to a faster
appreciation of the yuan. ``We are getting results through this
process that wouldn't have been achieved without it,'' Paulson
told reporters as he traveled to China, where he arrived late on
July 29. The yuan's ``rate of appreciation has gone up
materially over the past year,'' he said. China Development Bank,
one of the nation's three public policy lenders, plans to sell
20 billion yuan ($2.64 billion) of 10-year bonds tomorrow.


Read more at Bloomberg Bonds News

India, Indonesia, Malaysia, Singapore, 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: China Development Bank, a state-owned lender, will
sell 20 billion yuan ($2.64 billion) of 10-year bonds on Aug. 1.
China will maintain a tight monetary policy to prevent the
economy from ``overheating,'' Xinhua News Agency reported July
27. The government will apply ``moderate and tight monetary
policies to cool the growth pace in the economy and improve
quality and efficiency of the growth,'' Xinhua said, citing a
statement by the Chinese Communist Party's Political Bureau.


Read more at Bloomberg Bonds News

U.S. Treasuries Are Little Changed as Traders Weigh Credit Market Risks

(Bloomberg) -- Treasuries were little changed, with
10-year note yields holding near the lowest in more than six
weeks, as concerns about riskier credit markets lend support to
U.S. debt.

Yields on benchmark 10-year securities were below 5 percent
for a third day. The difference between yields on 10-year
Treasuries and swaps widened to 69 basis points, the most in more
than five years. Wider swap spreads are associated with concern
over higher borrowing costs for companies.


Read more at Bloomberg Bonds News

Turkish Lira, Stocks Climb After Erdogan's Justice Party Wins Re-Election

(Bloomberg) -- Turkish stocks, bonds and the lira
gained after voters re-elected Prime Minister Recep Tayyip
Erdogan, giving him a mandate to extend policies that won European
Union membership talks and helped bring 21 quarters of growth.

The ISE National 100 Index rose 3.8 percent to 54,966.6 as of
9:56 a.m. The lira rose 1.58 percent, trading at 1.253 to the
dollar. Yields on lira-denominated bonds fell 27 basis points to
17.19 percent, their lowest in 13 months, according to ABN Amro
benchmark prices. A basis point is 0.01 percentage point.


Read more at Bloomberg Currencies News

India's Bonds Advance as Increased Cash Surplus May Spur Demand for Debt

(Bloomberg) -- India's 10-year bonds rose for a
second day, sending yields to the lowest in more than five
months, on speculation increased spare cash in the banking
system will boost demand for debt.

Yields fell to near the lowest since Feb. 12 as a drop in
interbank lending rates and rising bids by banks to lend to the
central bank suggested surplus cash has increased. Bonds also
gained on optimism slowing inflation and loan growth will allow
the central bank to stop raising interest rates.


Read more at Bloomberg Bonds News

India, Indonesia, Malaysia, Thailand, China: 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: China Agricultural Development Bank will sell 10
billion yuan ($1.3 billion) of five-year floating rate notes
today. The interest rate will be based on the one-year deposit
rate of 3.06 percent plus a spread that is to be auctioned. The
Ministry of Finance on June 13 sold 38.38 billion yuan of three-
year notes at a coupon of 3.53 percent. The auction result was
lower than investors' expectation, driving down yields on short-
term bills yesterday.


Read more at Bloomberg Bonds News

Europe Bonds Gain for Third Day as S&P, Moody's Spur U.S. Subprime Concern

(Bloomberg) -- European bonds advanced for a third
day, the longest run of gains this month, on concerns about the
U.S. subprime mortgage sector prompted investors to seek the
safety of government debt.

Yields on benchmark 10-year bunds fell the most in a year
yesterday after Standard & Poor's said it may cut credit ratings
on $12 billion of bonds backed by subprime mortgages. Moody's
Investors Service later in the day lowered ratings on $5.2
billion of debt backed by home loans.


Read more at Bloomberg Bonds News

Treasuries Are Little Changed Amid Decline in New Home Sales Last Month

(Bloomberg) -- Treasuries were little changed as a
Commerce Department report showed purchases of new homes dropped
in May and a private index of consumer confidence declined this
month to the lowest level since August.

Benchmark 10-year note yields rose less than 1 basis point,
or 0.01 percentage point, to 5.09 percent at 10:05 a.m. in New
York, according to bond broker Cantor Fitzgerald LP. Yields,
which move inversely to the note's price, touched 5.327 percent
on June 13, the highest since April 2002. The price of 4 1/2
percent securities due in May 2017 fell 1/32, or 31 cents per
$1,000 face amount, to 95 15/32.


Read more at Bloomberg Bonds News

Wheat Rises as Thunderstorms Delay Harvesting of Crops in Oklahoma, Texas

(Bloomberg) -- Wheat rose in Kansas City and
Chicago as rains delayed harvests in parts of Oklahoma and
Texas, hurting yields and grain quality.

A ``daily chance of thundershowers'' threatens crops in
both states, Meteorlogix LLC said. As much as six times normal
rain fell in the past 30 days, according to National Weather
Service data, keeping machinery out of muddy fields. Yields in
some areas aren't as high as they were expected to be before an
April freeze damaged plants.


Read more at Bloomberg Commodities News

European Government Bonds Decline as Report Shows Signs of Life in Economy

(Bloomberg) -- European 10-year government bonds
fell, reversing earlier gains, as a report today showed the
economy grew at an unexpectedly rapid pace in June.

Yields on longer-date debt rebounded to near a five-year
high after Royal Bank of Scotland Group Plc's combined index of
services and manufacturing showed the highest reading since
February, contrary to the decline predicted in a Bloomberg News
survey. A separate report tomorrow will probably show German
business optimism is buoyant, stoking expectations the European
Central Bank will keep raising interest rates.


Read more at Bloomberg Bonds News

Treasuries Gain for Fourth Day, Longest Rally Since February, on Housing

(Bloomberg) -- Treasuries rose for a fourth day,
the longest rally since February, before a report on mortgage
applications that may add to evidence of a housing slowdown.

Yields on benchmark 10-year notes have fallen 11 basis
points this week as reports showed house construction declined
for the first time in four months and confidence among
homebuilders dropped to the lowest since 1991. Bonds have risen
on speculation a slowdown in the U.S. housing market will keep
the Federal Reserve from increasing interest rates.


Read more at Bloomberg Bonds News

Treasuries Poised for Sixth Weekly Decline Before U.S. Inflation Report

(Bloomberg) -- U.S. Treasuries headed for a sixth
weekly decline before a government report today that will
probably show consumer price inflation accelerated last month.

Yields on benchmark 10-year bonds rose 12 basis points to
5.23 percent this week, while those on Treasury Inflation
Protected Securities climbed 8 points to 2.78 percent, signaling
increased concern about gains in consumer prices.


Read more at Bloomberg Bonds News

Treasuries Fall, Pushing Yields Close to a Five-Year High on Inflation

(Bloomberg) -- Treasuries fell as a report on
producer prices signaled that inflation rose at a faster pace
last month, pushing yields close to a five-year high,.

Yields on 10-year U.S. notes are set to rise for a sixth
straight week amid growing concern among investors that
inflation won't moderate. Faster inflation erodes the value of
Treasuries' fixed payments and may fuel speculation the Federal
Reserve will lift interest rates later this year.


Read more at Bloomberg Bonds News

Canada's Dollar Falls to Lowest in Almost Two Weeks Before Shipment Report

(Bloomberg) -- The Canadian dollar fell to the
lowest in almost two weeks before a government report which may
show manufacturing shipments slowed in April.

The currency also dropped amid a broad rally in the U.S.
dollar as investors pared bets that the Federal Reserve will cut
borrowing costs this year. Yields on the U.S. 10-year Treasury
note rose to the highest since April 2002.


Read more at Bloomberg Currencies News

Indonesia, Malaysia, Sri Lanka, Taiwan, Thailand: 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: State-owned China Development Bank will sell 20
billion yuan ($2.6 billion) of five-year bonds on June 11. The
lender sold similar maturity debt at a yield of 3 percent on
Sept. 20. Retail sales may rise by about 14 percent in 2007 from
a year earlier, the Ministry of Commerce said in a research
report on June 5.


Read more at Bloomberg Bonds News

European Two-Year Bond Yields Hold at Six-Year High on Trichet Rate Views

(Bloomberg) -- European two-year government bonds
yields held near the highest since May 2001 after European
Central Bank President Jean-Claude Trichet hinted at further
increases in borrowing costs

Yields on benchmark 10-year bunds, more sensitive to the
inflation outlook, stayed at the highest in more than three years
after Trichet said interest rates in the euro region are still on
the ``accommodative'' side. The ECB lifted its refinancing rate a
quarter point to 4 percent today as predicted by all 54
economists in a Bloomberg News survey.


Read more at Bloomberg Bonds News

European Government Bonds Are Little Changed as ECB Raises Interest Rates

(Bloomberg) -- European government bonds were little
changed after European Central Bank policy makers raised interest
rates and before a speech by President Jean-Claude Trichet, who
may hint at further increases in borrowing costs.

Yields on two-year notes, more sensitive to interest-rate
expectations, held near a six-year high after the ECB lifted its
main rate a quarter point to 4 percent as predicted by all 54
economists in a Bloomberg News survey. Investors are betting
rates will go higher again this year to curb inflation as
economic growth in the euro region beats expectations.


Read more at Bloomberg Bonds News

U.S. Treasuries Advance as Yields at 10-Month High Attract Investors

(Bloomberg) -- U.S. Treasuries advanced as yields
near a 10-month high attracted investors.

Bonds stayed higher even as Federal Reserve Bank of
Cleveland President Sandra Pianalto said today U.S. inflation is
faster than she'd like. Yields on both two-year and 10-year
Treasuries yesterday rose to the highest since August, paced by
signs economic growth is quickening.


Read more at Bloomberg Bonds News

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

(Bloomberg) -- U.S. Treasuries may advance on
speculation yields near the highest in nine months will prove
attractive to investors.

Yields on two-year notes rose to 5 percent yesterday and
those on the 10-year bond climbed to 4.99 percent, as a report
showed U.S. service industries last month grew at the fastest
pace since April 2006. Goldman Sachs Group Inc. said yesterday
it no longer expects the Federal Reserve to lower borrowing
costs this year and increased its forecast for economic growth.


Read more at Bloomberg Bonds News