Treasuries Little Changed on Signs of Slowing Expansion, Decline in Stocks

(Bloomberg) -- Treasuries were little changed as
Asian stocks slid and speculation increased that losses tied to
subprime mortgages will prompt the Federal Reserve to cut
interest rates this year.

Ten-year notes may extend their gains into a fifth week
after reports showed employers added fewer jobs than expected
last month and bond investors are becoming less bearish.
Treasuries are on track to return 5.3 percent this year, the
most since 2002, according to a Merrill Lynch & Co. index.


Read more at Bloomberg Bonds News

TREASURIES-Bond prices gain after soft jobs, services data

(Reuters) - NEW YORK, Aug 3 - U.S. government debt prices
rose on Friday as soft data on the U.S. job market and services
sector spurred more bond investors' bets the Federal Reserve
may start cutting interest rates before year end.




U.S. stocks sagged partly on weak signals in the data,
helping to contributed to safe-haven bids for Treasuries, with
worries about riskier credit and the impact of subprime debt on
the financial sector resurfacing. Credit rating agency Standard
& Poor's cut Bear Stearns 's debt outlook, sending its
shares down.


Read more at Reuters.com Bonds News

Treasuries Climb as Jobs, Services Data Add to Bets on Economic Slowdown

(Bloomberg) -- Treasuries rose after weaker-than-
forecast reports on jobs and services reinforced speculation
that losses in mortgage-backed bonds will lead to a broad-based
economic slowdown.

Two-year notes, more sensitive than longer-maturity debt to
changes in monetary policy, led the rally as traders increased
bets that the Federal Reserve will cut interest rates this year.
The gains accelerated after Bear Stearns Cos., the second-
largest underwriter of mortgage-backed bonds, had its credit-
rating outlook cut to negative by Standard & Poor's.


Read more at Bloomberg Bonds News

TREASURIES-Bonds edge up as stocks dominate volatile day

(Reuters) - A government report showed the U.S. economy grew at a
stronger-than-expected annual rate of 3.4 percent in the second
quarter, rebounding from a dismal start to the year. See
[ID:nN27292437] for details.




One potential positive for Treasuries in the growth report
was the inflation gauge, which plunged, indicating that the
Federal Reserve now has more leeway if it needs to cut
benchmark interest rates in the second half of this year.


Read more at Reuters.com Bonds News

Treasuries Head for Third Weekly Gain as Investors Avoid Riskier Assets

(Bloomberg) -- Treasuries headed for a third weekly
advance, pushing yields near the lowest since May, as the slump
in U.S. housing prompts investors to avoid riskier assets.

Investors seeking the safety of government debt this week
pushed yields on two-year notes, most sensitive to changing
monetary policy, 70 basis points lower than the Federal Reserve's
target rate. The risk of owning corporate bonds soared to a
record on concern that banks and hedge funds face widening losses
on subprime mortgages and leveraged buyouts.


Read more at Bloomberg Bonds News

US RATE FUTURES-Slip, but still see year-end Fed rate cut

(Reuters) - A surge in futures on Thursday accelerated the implied
timing of a Federal Reserve rate cut to late 2007 from
mid-2008, and dealers said futures are subject to some
profit-taking pressure.




The Federal Open Market Committee next meets on Aug. 7. The
implied prospects for a cut in benchmark interest rates at that
meeting are about 15 percent.


Read more at Reuters.com Bonds News

U.K. Pound Rises to Highest Since May 1981 on Rate Differential With U.S.

(Bloomberg) -- The pound rose to its strongest
against the dollar since May 1981 on speculation the appeal of
U.K. assets will increase as the Bank of England keeps raising
interest rates while the Federal Reserve stays on hold.

The U.K. currency extended its six-week rally as the highest
benchmark yields of any Group of Seven nation lured investors
from abroad. U.K. rates will have to rise further, probably next
month, to stabilize inflation which held above the bank's target
for a 14th month in June, Ernst & Young LLP said.


Read more at Bloomberg Currencies News

U.K. Pound Rises to Highest in 26 Years on Outlook for BOE Interest Rates

(Bloomberg) -- The pound rose to its strongest in
26 years against the dollar on speculation the Bank of England
will keep raising interest rates.

The highest benchmark bond yields of any Group of Seven
nation have lured investors from abroad and pushed up the pound.
A report last week showed the U.K.'s economic expansion
unexpectedly quickened in the second quarter, while the U.S.
Federal Reserve trimmed its forecast for growth.


Read more at Bloomberg Currencies News

Dollar Falls to Record Low Versus Euro on Concern Subprime Losses to Mount

(Bloomberg) -- The dollar fell to a record low
versus the euro and headed for a sixth straight weekly drop as
concern increased that losses in subprime mortgages will worsen
a slowdown in U.S. housing and curb economic growth.

The currency also tumbled versus the yen as investors
exited riskier bets. Federal Reserve Chairman Ben S. Bernanke
said yesterday there will be ``significant financial losses'' on
mortgages given to people with poor credit histories.


Read more at Bloomberg Currencies News

Dollar Erases Gain Against Euro as Concern About U.S. Slowdown Increases

(Bloomberg) -- The dollar was little changed after
erasing a gain against the euro as concern increases that losses
in subprime mortgages will worsen a slowdown in the U.S. housing
market and curb economic growth.

The currency also pared its advance versus the yen as
investors avoided riskier assets and sought the safety of U.S.
government debt. Federal Reserve Chairman Ben S. Bernanke said
yesterday that losses on investments linked to mortgages given
to people with poor credit histories may total $100 billion.


Read more at Bloomberg Currencies News

Copper Gains on Speculation Global Economic Growth to Boost Metal Demand

(Bloomberg) -- Copper in New York gained the most
in more than two weeks on speculation that global economic
growth will increase demand for the metal used in homes, cars
and appliances.

China's economy in the second quarter expanded at the
fastest pace in 12 years, the statistics bureau said in Beijing
today. Federal Reserve Chairman Ben S. Bernanke said yesterday
U.S. growth will pick up ``a bit'' next year. The price of
copper has gained more than fourfold in the past four years as
worldwide demand outpaced production.


Read more at Bloomberg Commodities News

Dollar slips slightly, eyes interest rates

(Reuters) - The dollar eased slightly against most currencies on Thursday over concerns about the health of U.S housing market as investors eye the next Federal Reserve rate move.

The dollar reached its lowest levels in years on Wednesday following a speech by Federal Reserve Chairman Ben Bernanke outlining risks in the housing market that could weigh on U.S. economic growth.


Read more at Reuters Africa

Zloty Advances as Investors' Appetite for Emerging Market Assets Returns

(Bloomberg) -- The Polish zloty rose as investors
regained their appetite for risk and bought emerging-market
stocks.

Poland's WIG 20 index saw its biggest gain in more than two
weeks and stocks in Hungary, the Czech Republic and Romania also
rose after Federal Reserve Chairman Ben S. Bernanke allayed
concern that a housing slump would brake U.S. economic growth.


Read more at Bloomberg Emerging Markets News

S.Africa bourse slips on global economy, rates woes

(Reuters) - Mining groups Anglo American and BHP Billiton led South African shares lower on Wednesday over jitters of economic slowdown in the U.S. and China, but gold shares soared on the metal's price.

Traders said the bourse was spooked into profit taking as U.S. stocks fell after Federal Reserve Chairman Ben Bernanke said the Fed expects the U.S. economy to expand one-quarter percentage point below its estimate six months ago.


Read more at Reuters Africa

Gold hits six-week high as dollar slumps

(Reuters) - Gold hit a six-week high on Wednesday as the dollar tumbled to a record low against the euro, but dealers traded cautiously ahead of a testimony by U.S. Federal Reserve Chairman Ben Bernanke.

Analysts were not yet convinced the upward price move was sustainable as recent spikes prompted investors to take profits.


Read more at Reuters Africa

Gold slips ahead of US Federal Reserve minutes

(Reuters) - Gold erased overnight gains to slip on Tuesday, with dealers avoiding big moves ahead of testimony by U.S. Federal Reserve Chairman Ben Bernanke later in the week.

The metal has struggled to breach key technical levels after hitting a five-week high last week, but might get support from firm oil prices and the dollar, which stayed near record lows against the euro.


Read more at Reuters Africa