TREASURIES-Extend gains in Asia, market eyes Fed

(Reuters) - "Yields of Treasuries have fallen sharply, but investors
don't seem to be cautious about prices going too high amid
safe-haven rallies," said Ryuji Shimazu, a market analyst at
Shinko Securities.




"Market players seem to be building positions for possible
Fed rate cuts in the future."


Read more at Reuters.com 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

Turkish Stocks, Bonds, Lira Rise After Erdogan's Justice Party Re-elected

(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 Stocks 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

Wheat Declines on Speculation Crop Yields in Western Kansas May Double

(Bloomberg) -- Wheat fell in Kansas City on
speculation that yields in western Kansas and eastern Colorado
may as much as double.

Western Kansas was spared from excessive rain that damaged
crops in central and eastern Kansas and most of Oklahoma,
National Weather Service data showed. Yields will climb to 50 to
80 bushels an acre from 39 a year earlier, traders and analysts
said. Kansas growers are expected to get an average of 40.7
bushels an acre, the U.S. Department of Agriculture said on July
11.


Read more at Bloomberg Commodities 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

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

European Government Bonds May Decline on View ECB Will Signal Higher Rates

(Bloomberg) -- European government bonds may fall on
speculation European Central Bank President Jean-Claude Trichet
will signal further interest-rate increases after policy makers
conclude their monthly meeting.

While all 42 economists surveyed by Bloomberg News forecast
the Frankfurt-based ECB will hold borrowing costs at 4 percent
today, futures trading shows investors are raising bets the key
rate will reach 4.5 percent by year-end. Yields on Europe's
benchmark bund have risen 10 basis points this week.


Read more at Bloomberg Bonds News

India, Indonesia, Malaysia, Sri Lanka, Taiwan: 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: The nation should ``strictly control'' an asset
bubble in the stock market to ease short-term speculation, an
affiliate of the nation's top planning agency said yesterday.
The absence of a capital gains tax on equity investments has
made short-term trading more attractive than holding stocks over
a longer period and made it the main model for most Chinese
investors, the State Information Center said.


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

Goldman's O'Neill Says BOJ Should Increase Rates Regardless of Inflation

(Bloomberg) -- The Bank of Japan should raise
interest rates gradually even if there is no sign of inflation,
said Jim O'Neill, head of global economic research at Goldman,
Sachs Group Inc.

Yields on benchmark 10-year Japanese bonds have climbed more
than a quarter-percentage point since May 17, when BOJ Governor
Toshihiko Fukui said the bank can raise rates even if consumer
prices are falling, as long as it's confident about the outlook
for the economy. A report last week showed growth expanded more
than the government's initial estimate in the first quarter.


Read more at Bloomberg Bonds 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

China, 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: The government will sell 30 billion yuan ($3.9
billion) of 10-year bonds on June 22. It sold the same maturity
on March 21 at a yield of 3.4 percent. Fixed-asset investments
in China rose 25.9 percent in the first five months from a year
earlier, topping the 25.5 percent increase in the first four
months, a June 15 report showed.


Read more at Bloomberg Bonds News