Indian Rupee May Fall For Second Week on Concern Funds Will Sell Stocks

(Bloomberg) -- India's rupee may fall for a second
week on concern overseas funds will sell emerging-market assets
as a global rout in corporate debt and equities drives investors
to safer securities such as U.S. Treasuries.

The country's benchmark Bombay Stock Exchange Sensitive
Index, or Sensex, slumped the most in four months on July 27,
causing the rupee to fall from near a nine-year high. The
currency may extend its biggest weekly decline in almost two
months, a survey of traders showed.


Read more at Bloomberg Currencies News

Emerging Market Bonds Decline as Investor Aversion to Riskier Assets Rises

(Bloomberg) -- Emerging-market bonds declined,
reversing earlier gains, as investors resumed selling riskier,
higher-yielding assets on mounting concern about losses related
to subprime mortgages.

The extra yield over U.S. Treasuries that investors demand
to hold the developing nation debt has soared to the highest in
more than a year. Argentine debt, among the riskiest in emerging
markets, has posted the biggest declines.


Read more at Bloomberg Emerging Markets News

Global Stocks Drop; Investors Shun Risk as Credit Market Turmoil Worsens

(Bloomberg) -- Stocks tumbled around the world and
U.S. Treasuries rallied on concern higher borrowing costs will
slow takeovers, spur debt defaults and curb earnings, prompting
investors to flee riskier assets.

The Standard & Poor's 500 Index fell to its lowest in almost
three months, while the FTSE 100's biggest drop in four years led
declines across Europe. Benchmark stock indexes in Argentina,
Brazil, Mexico, Turkey and Sweden sank more than 3 percent.


Read more at Bloomberg Stocks News

TREASURIES-Bonds surge as credit fears sweep through markets

(Reuters) - NEW YORK, July 26 - U.S. Treasuries rallied on
Thursday, pushing benchmark yields to two-month lows, as weak
economic data and fears of a global credit crunch sent
investors scurrying out of stocks and other risky assets.




A sharp fall in new-home sales and an unexpected slide in
business investment data spurred an already strong Treasury
market, as overall durable goods orders rose less than expected
in June. For details see [ID:nN26366824].


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

Treasuries Rise Before Reports on Consumer Price Inflation, Housing Starts

(Bloomberg) -- U.S. Treasuries rose before
government reports this week that economists said will show
consumer prices slowed in June and home building declined.

Notes have risen in the past week as losses tied to subprime
mortgages fed speculation that a cooling in the U.S. housing
market will hurt the world's biggest economy. Federal Reserve
Chairman Ben S. Bernanke may speak about housing during
congressional testimony July 18 and 19.


Read more at Bloomberg Bonds News

Hedge funds eye Mexico amid US subprime woes

(Reuters) - Some international investors, who previously shunned the
Mexican mortgage market because of its relatively small size,
are beginning to buy in, with issues paying yields as much as 2
percentage points above comparable U.S. Treasuries.




"We've seen stronger interest in the Mexican market from
some international investors now that we've seen some adverse
outcomes in the U.S. subprime market," said Luis Arce, chief
financial officer of New York hedge fund Christofferson, Robb
and Company, which manages $1.5 billion of assets.


Read more at Reuters.com Bonds News

Brazil's Real Weakens on Concerns Yield Difference to Treasuries to Narrow

(Bloomberg) -- Brazil's real fell on concern
inflationary pressure in the U.S. may lead to higher interest
rates in the world's largest economy and reduce the allure of
local bonds and stocks.

Yields on U.S. Treasuries rose today after a report showed
U.S. companies added more jobs than expected in June.


Read more at Bloomberg Currencies News

Agency Mortgage Bonds Have Worst Month Since July 2003, Lehman Index Shows

(Bloomberg) -- Mortgage-backed bonds guaranteed by
Fannie Mae, Freddie Mac and Ginnie Mae, a $4 trillion market
that rivals the scope of U.S. Treasuries, underperformed last
month by the most since July 2003 as investors sought the safety
of government debt and interest rates became more volatile.

So-called agency mortgage bonds in June returned
0.53 percentage points less than U.S. Treasury notes with
maturities similar to their expected lives, a Lehman Brothers
Holdings Inc. index shows.


Read more at Bloomberg Bonds News

Treasuries Are Little Changed as Fed Policy Makers Meet on Interest Rates

(Bloomberg) -- U.S. Treasuries were little changed
ahead of the Federal Reserve's interest-rate decision.

All 113 economists surveyed by Bloomberg News predict the
Fed will keep its key rate at 5.25 percent for an eighth time,
leaving Treasury yields below the central bank's benchmark.


Read more at Bloomberg Bonds News

Asian Currencies Drop as Yield Advantage Narrows; Taiwan Dollar Advances

(Bloomberg) -- Southeast Asian currencies, including
the Indonesian rupiah and the Philippine peso, dropped because
investors cut holdings of emerging-market assets as U.S. bonds
extended declines.

The rupiah and the peso had their biggest slide in a week as
rising Treasury yields narrowed the premium investors receive for
holding emerging-market debt. Fund managers get 3.62 percentage
points more by keeping Indonesian 10-year bonds instead of
similar-maturity U.S. Treasuries, down from 3.85 percentage
points at the beginning of June.


Read more at Bloomberg Currencies News

Treasuries Rise a Third Day as Housing Starts Decline to a Four-Month Low

(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

Indonesia Rupiah Gains on Investors' Risk Appetite: World's Biggest Mover

(Bloomberg) -- Indonesia's rupiah had its biggest
advance in more than a year as overseas investors returned to
the country's financial markets. Bonds rose.

The rupiah gained 1.6 percent, the biggest fluctuation of
any major currency, as the Jakarta Composite Index of stocks
rose as much as 0.8 percent to a record. The Philippine peso and
Malaysian ringgit also rose as a rebound in U.S. Treasuries gave
investors confidence to invest in emerging markets.


Read more at Bloomberg Currencies News

Treasuries Advance as Yields Lure Investors Before U.S. Housing Reports

(Bloomberg) -- U.S. Treasuries rose as yields near
a five-year high attracted some investors before U.S. housing
market data today and tomorrow.

Bonds rebounded after a six-week slide, the longest run of
losses since 2005. An industry report today will show sentiment
among home builders matched the lowest since 1991 and a separate
report tomorrow will signal a decline in housing construction to
a four-month low, according to Bloomberg surveys.


Read more at Bloomberg Bonds News

JGB futures climb on Fukui, Treasury gains boost

(Reuters) - A rally in U.S. Treasuries on Friday also encouraged market
players to cover short positions in JGBs, which had been sold off
in the previous four weeks on a spike in global bond yields, as
well as on worries of a BOJ rate hike as early as July.




Fukui said the central bank wanted to be more convinced of
the sustainability of capital spending and consumption before
changing monetary policy, relieving some who had been worried
about an interest rate hike next month.


Read more at Reuters.com Bonds News

Treasuries Little Changed; U.S. Producer Price Report May Signal Inflation

(Bloomberg) -- U.S. Treasuries were little changed,
following a six-week rout, before a government report today that
will probably show faster inflation.

The 10-year Treasury note's yield gained 1 basis point to
5.21 percent. The yield is 13 basis points more than on two-year
government debt, compared with a spread of 1 basis point a week
ago. The Labor Department will probably say producer prices
excluding food and energy costs rose in May from a month before,
after being unchanged in April, according to a Bloomberg survey.


Read more at Bloomberg Bonds News