TREASURIES-Bonds rise as stocks fall,rally shows fatigue

(Reuters) - NEW YORK, July 27 - U.S. Treasuries rose on
Friday, driving benchmark yields to fresh two-month lows, as
stocks stayed under pressure with investors worried over
tighter access to credit.




Data showing the U.S. economy grew at a surprisingly strong
rate in the second quarter of 2007 only briefly calmed fears of
a slump following this week's turmoil in global financial
markets. See [ID:nN27292437] for details.


Read more at Reuters.com Bonds News

TREASURIES-Bonds rise, taking cues from slide in stocks

(Reuters) - NEW YORK, July 27 - U.S. Treasuries rallied in
volatile trading on Friday, sending benchmark yields to two
two-month lows, as U.S. stock prices went into another steep
slide and investors continued to fret over a global credit
crunch.




Data showingthe U.S. economy grew at a surprisingly strong
rate in the second quarter of 2007 only briefly calmed fears of
a slump following this week's turmoil in global financial
markets. See [ID:nN27292437] for details.


Read more at Reuters.com Bonds News

South African Rand Gains on Speculation Yield Advantage Over U.S. to Stay

(Bloomberg) -- South Africa's rand gained versus the
dollar on speculation the central bank will keep raising interest
rates, improving the appeal of the country's assets.

The rand was the third best performer today as the spread,
or yield gap, between 10-year South African bonds and equivalent
U.S. Treasuries rose to near the highest in six months. This and
the Reserve Bank's 9.5 percent main lending rate makes local
assets attractive for so-called carry trade investors who fund
their purchases by borrowing other currencies more cheaply.


Read more at Bloomberg Currencies News

RPT-TREASURIES-Bonds dip from last week's rally

(Reuters) - NEW YORK, July 23 - U.S. Treasuries slipped on
Monday, lifting benchmark yields from Friday's six-week lows as
stocks rallied.




The gains in stocks tempted buyers back into riskier assets
and out of U.S. government bonds, which rallied last week on
safe-haven buying sparked by investor fears problems in the
subprime mortgage sector, which caters to borrowers with shaky
credit, were spreading through financial markets.


Read more at Reuters.com Bonds News

TREASURIES-Bonds dip as stocks shine through subprime cloud

(Reuters) - NEW YORK, July 23 - U.S. Treasuries eased on
Monday, pulling benchmark yields back from recent six-week lows
as rising stocks brought respite from risk aversion in other
markets after last week's scare over the subprime market.




Financial market losses related to subprime, the mortgage
sector that targets borrowers with poor credit, led to a flight
to quality by investors into Treasuries last week, giving
10-year notes their best rally since March.


Read more at Reuters.com Bonds News

Bear Market Tightens Grip on Treasuries as Jobs, Inflation Trump Housing

(Bloomberg) -- The bear market in U.S. Treasuries
is just getting started as investors turn their attention to
the strengthening labor market and faster inflation instead of
the decline in home prices.

That's the conclusion of economists at Lehman Brothers
Holdings Inc., Morgan Stanley and RBS Greenwich Capital. They
estimate 10-year government notes will return 1.28 percent this
year, not even enough to cover inflation. The performance would
be the worst since 1999, when they lost 8.25 percent, Merrill
Lynch & Co. index data show.


Read more at Bloomberg Bonds News

Japan's 10-Year Bonds Have Biggest Weekly Drop in Month Amid Global Growth

(Bloomberg) -- Japanese bonds had the biggest
weekly drop in a month on speculation signs of accelerating
global growth will support the central bank's case for
increasing interest rates.

Ten-year bonds fell yesterday, pushing yields to a
three-week high, after U.S. Treasuries had the biggest loss
in three weeks on July 5. Private U.S. reports this week
showed job creation was faster than expected and growth in
service industries accelerated, signaling the world's
largest economy is gaining momentum.


Read more at Bloomberg Bonds News

Japan's 10-Year Bonds May Rise After Treasuries Gain on Slower Inflation

(Bloomberg) -- Japanese government bonds may rise
for a second day after U.S. Treasuries gained on signs of
slowing inflation in the world's largest economy

Ten-year bonds in Japan last week completed the first back-
to-back weekly advance since March after a government report
showed consumer prices in Tokyo unexpectedly dropped. The Bank
of Japan's Tankan index of confidence among large manufactures
was unchanged at 23 points in June from March.


Read more at Bloomberg Bonds News

Japanese Government Bonds May Rise on View Tankan Won't Back Higher Rates

(Bloomberg) -- Japanese government bonds may rise
for a second day on speculation the central bank's Tankan survey
will fail to increase the likelihood for higher interest rates.

Ten-year bonds last week completed their first back-to-back
weekly gain since March after a government report showed
consumer prices in Tokyo unexpectedly dropped. U.S. Treasuries
rose on June 29, pushing 10-year yields to a three-week low,
after an inflation gauge watched by the Federal Reserve slowed.


Read more at Bloomberg Bonds News

Emerging-Market Bonds Decline as Demand for Risky, High-Yield Assets Wanes

(Bloomberg) -- Emerging-market bonds tumbled, led by
declines in Ecuadorean and Argentine securities, as concern about
losses related to subprime mortgages in the U.S. prompted some
investors to pare holdings of riskier assets.

The average spread, or extra yield, on emerging-market bonds
over U.S. Treasuries widened 6 basis points, or 0.06 percentage
point, to 1.74 percentage points, according to JPMorgan Chase &
Co.'s EMBI Plus index. Today's spread is the widest since March
21.


Read more at Bloomberg Bonds News

Japan's 10-Year Bonds Advance After Treasuries Gain on Flight to Safety

(Bloomberg) -- Japan's government bonds rose after
U.S. Treasuries gained last week as investors sought a haven
from possible hedge fund losses.

Ten-year bonds climbed for a second day as the Nikkei 225
Stock Average fell on concern losses in the U.S. subprime market
will be worse than expected, triggering a decline in global
stocks. Treasuries, which often lead Japan's bond prices, rose
June 22 after Bear Stearns Cos. offered to provide $3.2 billion
in loans to bail out one of its money-losing hedge funds.


Read more at Bloomberg Bonds News

Dollar Little Changed Versus Euro, Yen Before Fed's Philadelphia Report

(Bloomberg) -- The dollar traded little changed
against the euro and yen before a Federal Reserve report forecast
to show manufacturing accelerated in the Philadelphia region,
helping the economy rebound from the slowest pace in four years.

The U.S. currency pared most of its gains versus the euro as
yields on U.S. Treasuries erased an advance, dimming the allure
of dollar-denominated assets. A government report showed more
Americans than forecast filed first-time claims for unemployment
benefits last week, suggesting the labor market may be cooling.


Read more at Bloomberg Currencies News

Treasuries Little Changed as Report Shows Housing Starts Fell Last Month

(Bloomberg) -- U.S. Treasuries rose for a third
straight day after a government report showed home construction
slowed to a four-month low in May.

The consecutive declines in yields on benchmark 10-year
notes is the longest streak in two months. Yields on the
securities had touched the highest in five-years last week as
investors pared expectations for the Federal Reserve to reduce
interest rates this year.


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, Heading for Sixth Weekly Decline, Before Inflation Report

(Bloomberg) -- U.S. Treasuries fell, heading for a
sixth weekly decline, as a government report today will probably
show inflation accelerated last month.

Yields on benchmark 10-year bonds rose 13 basis points to
5.239 percent this week, while those on Treasury Inflation
Protected Securities increased 9 points to 2.79 percent,
signaling increased concern about gains in consumer prices.


Read more at Bloomberg Bonds News

Treasury Market `Specials' Decline After Warning on Manipulative Trading

(Bloomberg) -- Shortages of U.S. Treasuries have
become less common in the $5 trillion market for borrowing and
lending the securities since Treasury Department officials
warned Wall Street firms to end manipulative trading practices.

Failures to receive or deliver securities, an indication of
scarcity, have averaged $102.1 billion a week this year, less
than a third of their 2005 average and the fewest since 2000,
according to Federal Reserve Bank of New York data. Lending of
all debt securities by the 21 firms that trade directly with the
Fed averaged $2.5 trillion a day that year, according to the
Securities Industry and Financial Markets Association.


Read more at Bloomberg Bonds News

New Zealand Dollar Gains on Speculation Yield Premium May Widen Over U.S.

(Bloomberg) -- New Zealand's dollar rose against the
U.S. currency as gains in U.S. stocks gave investors confidence
to buy higher-yielding assets with money borrowed in countries
with lower interest rates, such as Japan.

The local dollar, known as the kiwi, has risen 7 percent
this year as investors put on so-called carry trades, lured by
the second-highest interest rates among AAA-rated countries. The
appeal of holding New Zealand dollar-denominated securities was
boosted after the yield on 10-year U.S. Treasuries yesterday fell
from a five-year high.


Read more at Bloomberg Currencies News

Yen Trades at Lowest Since December 2002 Against Dollar on Yield Spread

(Bloomberg) -- The yen traded at the weakest against
the dollar since December 2002 as investors were enticed by the
yield advantage on U.S. Treasuries over Japanese debt.

The Bank of Japan will probably keep its overnight lending
rate at the lowest among major economies at a two-day meeting
beginning today, encouraging investors to send money overseas in
so-called carry trades. The yen has dropped 2.9 percent this year
as traders reduced bets on Federal Reserve rate cuts, causing the
U.S. 10-year yield spread with Japan to widen to a four-year high.


Read more at Bloomberg Currencies News