Taiwan Government Bonds Climb as Stock Losses Spur Demand; Currency Falls

(Bloomberg) -- Taiwan's 10-year government bonds
advanced on speculation a decline in stocks prompted investors to
seek the safety of debt's fixed income. The currency weakened.

Yields, which move inversely to prices, were the lowest in
three weeks on concern defaults on U.S. subprime mortgages are
spreading to the broader economy. Regional equity markets fell,
with the island's Taiex index of shares dropping as much as 2.1
percent.


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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.


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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.


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India, Malaysia, South Korea, 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's central bank yesterday sold 1 billion yuan
($132 million) of three-year fixed rate notes at a coupon of
3.62 percent. It also issued 44 billion yuan in three-month
zero-coupon notes at a discounted price of 99.32 yuan. The
Ministry of Finance will sell 35 billion yuan of three-year
fixed-rate notes today.


Read more at Bloomberg Bonds News

China, Malaysia, South Korea, Thailand, India: 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 sold 20 billion yuan ($2.63
billion) of 10-year floating rate bonds yesterday. The coupon
was one-year deposit rate of 3.06 percent plus 89 basis points.
Ten-year bonds sold in May carried a coupon of 60 basis points
more than the one-year deposit rate. The Ministry of Finance
will sell 35 billion yuan of three-year fixed-rate notes on July
13.


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Emerging debt-Prices lower on strong US jobs data

(Reuters) - Brazil's local rates were an exception, as a moderate
reading of the country's benchmark inflation index supported
the view that the central bank will keep cutting interest rates
at the current pace of half a percentage point for a while.




Yields on the benchmark 10-year U.S. Treasury note
rose to 5.19 percent from 5.14 percent late on
Thursday on news 132,000 new jobs were added to non-farm
payrolls in June, more than the 120,000 expected by economists.
In the beginning of the week, 10-year Treasuries yields were
below 5 percent.


Read more at Reuters.com Bonds News

Gold, Silver Decline in New York as Investors Shift to U.S. Treasuries

(Bloomberg) -- Gold fell for the second straight
day, and silver tumbled in New York on speculation that
investors will seek higher returns from U.S. Treasury bonds.

Gold, which bears no interest, has slumped 3.8 percent
since June 1. Yields on the benchmark 10-year note remained
above 5 percent after reaching a five-year high of 5.327 percent
on June 13. Before today, the precious metal had gained 2.6
percent this year.


Read more at Bloomberg Commodities News

China, India, Indonesia, Malaysia, South Korea: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence Asian local-currency bonds today. Yields
are from the previous session.

China: China Development Bank, the nation's second-biggest
issuer of debt, failed to sell 8.1 billion yuan ($1.06 billion)
of asset-backed securities, the government's depository said in
a report. The bank's sale didn't meet the minimum fund-raising
amount in its contract, and China Development Bank will have to
rearrange the asset pool and try to issue the bonds again, China
Government Securities Depository Trust & Clearing Co. said June
22 on its China Bond Web site.


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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.


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U.S. Treasury Notes May Decline; Deutsche, Lehman Drop Calls for Rate Cut

(Bloomberg) -- U.S. 10-year notes may fall after
signs of growth in the economy made Deutsche Bank AG and Lehman
Brothers Holdings Inc. drop forecasts for the Federal Reserve to
cut interest rates this year.

The firms announced their changes at the end of last week,
following an increase in 10-year yields to their highest in five
years. Yields, which move in the opposite direction as prices,
climbed as former Fed Chairman Alan Greenspan predicted they may
rise further.


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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.


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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.


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Thai Bonds Gain as Benchmark Yields Near 14-Week High Attract Investors

(Bloomberg) -- Thailand's 10-year bonds rose,
halting a five-day decline, on speculation yields at the highest
in more then three months will attract investors. The baht was
little changed.

Yields on the securities have risen by more than half a
percentage point this month as investors bet the central bank
will slow the pace of interest rate cuts in the second half of
the year. The Bangkok-based University of Thai Chamber of
Commerce will release its May consumer confidence index today.


Read more at Bloomberg Bonds News