Fidelity Inflation Bond Fund Trails Vanguard After Subprime Mortgage Rout

(Bloomberg) -- Fidelity Investments' Inflation-
Protected Bond Fund is lagging behind its biggest competitor,
Vanguard Group, after losses in subprime mortgages, this year's
worst-performing debt market.

The $1.3 billion mutual fund, run by William Irving in
Merrimack, New Hampshire, rose 3.3 percent this year, trailing
the 4 percent gain of the Vanguard Inflation-Protected
Securities Fund, which holds no mortgage bonds. The Fidelity
fund advanced at an annual rate of 5.6 percent during the past
five years, compared with the 6 percent return of the $10.2
billion Vanguard fund, data compiled by Bloomberg show.


Read more at Bloomberg Exclusive News

TREASURIES-Bond prices rise as stock market turns lower

(Reuters) - Bonds have been closely mirroring stocks recently, gaining
when stocks fall as investors turn to the relative safety of
bonds.




"Bonds are not leading, they are being led," said David
Ader, head of government bond strategy at RBS Greenwich Capital
in Greenwich, Connecticut. "Stocks were up and now they are
close to the lows of the day, while bonds were lower and now
they are higher on the day. It's not much more complicated than
that."


Read more at Reuters.com Bonds News

Argentina Construction, Brazil Inflation: Latin America Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Latin American local bonds
today. Bond yields are from the previous session.

Argentina: Construction activity rose 4.3 percent in June
from a year earlier, the National Statistics Institute reported
on July 27. Construction activity rose a seasonally adjusted 1.4
percent in June from May, the Institute said in Buenos Aires.


Read more at Bloomberg Bonds News

TREASURIES-Bonds rally on stock slide, credit woes

(Reuters) - Bonds could get an additional lift if the durable goods
data at 8:30 a.m. shows signs of weakness in
business investment. Investors were also awaiting new home
sales data at 10 a.m. amid concerns that the housing
market is a drag on the U.S. economy.




But for now, with weak stocks and news of firms having
difficulty obtaining financing for buyout activity, Treasuries
were seeing a strong bid.


Read more at Reuters.com Bonds News

TREASURIES-Bonds still down after existing homes data

(Reuters) - The benchmark 10-year note's price traded down 5/32 for a
yield of 4.93 percent , versus 4.93 percent before
the report and compared with 4.91 percent late on Tuesday. Bond
yields and prices move inversely.




Read more at Reuters.com Bonds News

Early CPDOs far riskier than ratings imply-UBS

(Reuters) - Last week Fitch Ratings and Dominion Bond Rating Service,
neither of which have rated CPDOs, said that the early deals
may be highly sensitive to small changes in the assumptions
underlying them. For details, see [ID:nL18292745]




"We think that early CPDOs, the ones that were introduced
last summer and fall, have a very fundamental problem with
them," said Anthony Morris, executive director in structured
products research at UBS on a conference call on Monday.


Read more at Reuters.com Bonds News

U.S. Notes Rise as Investors' Risk Appetite Wanes, Asian Stocks Decline

(Bloomberg) -- U.S. Treasuries rose, with the yield
on 10-year notes falling to the lowest in almost two months, on
speculation investors sold stocks and sought the relative safety
of government debt.

The yield on the 4 1/2 percent 10-year note maturing in May
2017 fell 2 basis points, or 0.02 percentage point, to 4.93
percent as of 1:20 p.m. in Singapore, according to bond broker
Cantor Fitzgerald LP. The price rose 4/32, or $1.25 per $1,000
face amount, to 96 21/32. Bond yields move inversely to prices.


Read more at Bloomberg Bonds News

China's Yuan Advances on Speculation Currency Policy to Help Cool Growth

(Bloomberg) -- The yuan rose by the most in almost
two weeks on speculation China will pursue a stronger currency to
cool economic growth, after the central bank last week raised
interest rates for the third time since March. Bonds may drop.

A stronger yuan would curb export sales that have flooded
the financial system with cash, driving the fastest pace of
economic expansion in 12 years in the second quarter. The
currency gained 0.4 percent in June as the trade surplus widened
87 percent from a year ago to an all-time high of $26.9 billion.


Read more at Bloomberg Currencies News

Treasuries Little Changed as Bernanke Says Economic Growth Will Pick Up

(Bloomberg) -- Treasuries were little changed as
Federal Reserve Chairman Ben S. Bernanke predicted U.S. economic
growth will pick up slightly next year and inflation will
gradually recede.

The yield on the benchmark 10-year note rose almost 1 basis
point, or 0.01 percentage point, to 5.05 percent at 10:05 a.m.
in New York, according to bond broker Cantor Fitzgerald LP. The
price of the 4 1/2 percent note due in May 2017 fell 2/32, or 63
cents per $1,000 face amount, to 95 3/4. Bond yields and prices
move in the opposite direction.


Read more at Bloomberg Bonds News

Argentina, Brazil, Colombia, Mexico: Latin America Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Latin American local bonds
today. Bond yields are from the previous session.

Argentina: The country's economic expansion won't be hurt
by natural gas shortages, Planning Minister Julio de Vido said
in Santa Cruz, Bolivia, on July 13. The current shortages are a
result of the country's high rates of economic growth, De Vido
said.


Read more at Bloomberg Bonds News

India's Bonds Gain on Speculation Surplus Cash to Boost Demand for Debt

(Bloomberg) -- India's 10-year bonds rose on
speculation an increase in spare cash in the banking system will
boost demand for debt.

Yields, which move inversely to prices, dropped to near the
lowest in more than four months after a drop in interbank
lending rates and an increase in banks' bids to lend to the
central bank suggested there's more surplus cash. Bonds may also
gain on optimism slowing inflation and loan growth will allow
the central bank to refrain from raising interest rates.


Read more at Bloomberg Bonds News

Japan's Bond Futures Advance After Downgrades of U.S. Subprime-Backed Debt

(Bloomberg) -- Japan's 10-year bond futures rose in
the past week after downgrades of debt backed by U.S. subprime
mortgages sparked demand for the safety of government securities.

Bond futures on July 11 had the biggest gain since August
after Moody's Investors Service cut ratings on $5.2 billion of
debt backed by loans to homeowners with poor credit histories.
Concern economic growth in the U.S., Japan's largest export
market, will slow helped bond futures rebound from the steepest
weekly drop since last month.


Read more at Bloomberg Bonds News

Japan's Bonds Head for Biggest Advance in Six Months on Subprime Concerns

(Bloomberg) -- Japan's 10-year bonds headed for the
biggest gain in six months after credit-rating downgrades of U.S.
subprime mortgages sparked demand for government debt.

The yield on the benchmark 1.8 percent bond due in June
2017 slid 5 basis points to 1.91 percent in Tokyo as of 9:30 a.m.
at Japan Bond Trading Co., the nation's largest interdealer debt
broker. The decline in yields, which move inversely to prices,
was the steepest since January 19.


Read more at Bloomberg Bonds News

Japan's Bonds Drop for Fourth Day After Machinery Orders Beat Expectations

(Bloomberg) -- Japan's 10-year bonds fell for a
fourth day after government report showed machinery orders rose
for a second month in May, increasing speculation the central
bank will raise interest rates next month.

Yields on benchmark 10-year bonds rose 2 basis points to
1.95 percent as of 9:11 a.m. in Tokyo at Japan Bond Trading Co.,
the nation's largest interdealer debt broker.


Read more at Bloomberg Bonds News

European Government Bonds Post Weekly Decline on Outlook for ECB Rates

(Bloomberg) -- European government bonds fell this
week, extending the worst quarterly slide in almost eight years,
after European Central Bank President Jean-Claude Trichet
signaled policy makers may need to lift interest rates further by
year-end.

Benchmark debt dropped today, sending 10-year bund yields to
near a five-year high, after a report showed manufacturing orders
in Germany rose more than expected in May. Bonds fell yesterday
after Trichet said inflation in the region needs ``careful
monitoring,'' as the ECB kept its key rate at 4 percent.


Read more at Bloomberg Bonds News

Bond prices ease on higher stock market

(Reuters) - Treasuries briefly trimmed their losses after weaker-than-forecast pending home sales data, but the move was fleeting, outweighed in part by gains in the stock market. Bond trading was razor-thin a day before the U.S. July 4 Independence Day holiday




Pending U.S. home sales in May fell more than analysts had expected to their lowest level in more than 5-1/2 years, according to data from the National Association of Realtors.


Read more at Reuters.com Hot Stocks News

TREASURIES-Bond prices rise on tame inflation data

(Reuters) - The positive inflation data added to month-end and
quarter-end buying, as well as a modest flight-to-quality bid
from weaker equities and news that British police had defused a
bomb left in an abandoned car in London's theater district.




""Bonds are doing a little better. We have a benign core
PCE deflator and another month of confirmation that consumer
spending is slowing down significantly in the second quarter
from its average pace of the first," said Josh Stiles, bond
strategist with IDEAglobal in New York.


Read more at Reuters.com Bonds News

RPT-TREASURIES-Bonds add gains after U.S. core inflation data

(Reuters) - Benchmark 10-year notes were up 7/32 in price
for a 5.08 percent, versus 5.09 percent shortly before the core
PCE data and 5.11 percent late Thursday. Bond prices and yields
move inversely.




Read more at Reuters.com Bonds News

South Korea's Won Strengthens on Consumer Confidence; Bonds Little Changed

(Bloomberg) -- The South Korean won had the
strongest close in more than a month after a central bank report
showed consumers were the most optimistic in 15 months in the
second quarter. Bonds were little changed.

Growth in Korea's gross domestic product is likely to
strengthen ``gradually'' over the rest of 2007 as domestic
demand picks up, the Organization for Economic Cooperation and
Development said June 20. The won rose after the finance
ministry said consumers are supporting the expansion in Asia's
third-largest economy.


Read more at Bloomberg Currencies News

India's 10-Year Bonds Advance in Week as Inflation Slows to One-Year Low

(Bloomberg) -- India's 10-year bonds advanced in
the week after a government report showed the inflation rate
declined more than economists expected, to a 13-month low.

Bonds snapped two weeks of losses as the Ministry of
Commerce and Industry said wholesale prices climbed 4.28 percent
in the week ended June 9 from a year earlier. The median
estimate in a Bloomberg News survey was for an increase of 4.45
percent. Slower inflation boosts the value of the returns from
debt, making the securities more attractive.


Read more at Bloomberg Bonds News