Vietnam's June Reserve Increase Will Be Last for Now, Policy Maker Says

(Bloomberg) -- Vietnam's recent increase in bank
reserves will be the last for now as the government assesses the
effect on inflation, said the policy maker in charge of banking.

Any perceived reluctance to quell the fastest inflation in
17 months is likely to deter overseas investors from buying
Vietnam's stocks and bonds. The threat of inflation ``calls for
action'' by the central bank to reduce the amount of money in the
banking system, HSBC Holdings Plc said in research last week.


Read more at Bloomberg Bonds News

Singapore Dollar to Rise 10 Percent to Record $1.38, BNP Paribas Predicts

(Bloomberg) -- The Singapore dollar may rise 10
percent to a record in a year as an influx of tourists and
bankers supports economic growth, BNP Paribas SA said.

The currency may reach S$1.38 per dollar by June 30, passing
the record of S$1.3835 reached in 1995, as the Monetary Authority
of Singapore seeks gains to curb inflation, said Thio Chin Loo,
senior foreign-exchange strategist in Singapore at France's
largest bank by market value.


Read more at Bloomberg Currencies News

Philippine Inflation Probably Stayed Close to Seven-Year Low on Currency

(Bloomberg) -- Philippine inflation probably rose in
July. Still, the pace was close to the slowest in 7 1/2 years as
gains in the peso against the dollar lowered the price of
imports, including oil.

Consumer prices increased 2.4 percent from a year earlier,
according to the median estimate of 14 economists surveyed by
Bloomberg News. Inflation was 2.3 percent in June after rising
in the previous two months from 2.2 percent, the lowest level
since January 2000. The National Statistics Office report is due
tomorrow at 9 a.m. in Manila.


Read more at Bloomberg Currencies News

Canada's Dollar Strengthenens as Crude Oil Surges, Growth Accelerates

(Bloomberg) -- Canada's dollar rose, ending its two-
week losing streak, as crude oil prices touched a record high,
and economic growth accelerated in May.

Canada's currency has gained this year as the Bank of
Canada raised interest rates to stem inflation and cool the
expanding economy. The currency, up more than 11 percent against
the U.S. dollar this year, is the second-best performer among 16
most actively traded currencies, trailing only Brazil's real.


Read more at Bloomberg Currencies News

Brazil's FIPE inflation slows to 0.27 pct in July

(Reuters) - Clothing prices fell 0.62 percent and transport costs
extended their drop to 0.38 percent after 0.16 percent the
previous month. Food prices rose the most, by 1.06 percent, but
much less than in June, when the rise was of 1.9 percent, due
to a seasonal decline in output of certain crops.




The Fipe index is closely watched by economists for trends
in Brazil's benchmark IPCA inflation index, which is used by
the central bank to set interest rates.


Read more at Reuters.com Economic News

European Government Bonds Post Weekly Decline as ECB Signals Rates to Rise

(Bloomberg) -- European government bonds posted their
first weekly decline in a month after the European Central Bank
indicated it will raise interest rates further this year.

The decline in German bunds, Europe's benchmark, pushed 10-
year yields to the highest in a week yesterday after ECB
President Jean-Claude Trichet signaled rates may rise from a six-
year high of 4 percent as early as September. Fellow policy maker
Lorenzo Bini Smaghi told Italian newspaper Il Sole-24 Ore that
inflation would quicken this year, adding to the case for higher
borrowing costs.


Read more at Bloomberg Bonds News

TREASURIES-Bond dip on firmer stocks, credit markets

(Reuters) - NEW YORK, July 31 - U.S. Treasuries eased on
Tuesday as stocks rose for a second day and credit markets
rallied on waning fears over tighter access to funding.




Government bonds were little moved by mixed economic data
that painted a picture of benign inflationary pressures and
slower economic growth, but surprisingly upbeat consumer
sentiment. For details, see [ID:nN30403317], [ID:nN30443227]


Read more at Reuters.com Bonds News

China Tells Some Local Governments to Hold Prices for the Rest of the Year

(Bloomberg) -- China's top planning agency told
local governments in some regions to refrain from raising prices
for the rest of the year, seeking to curb inflation that rose to
a 33-month high in June.

The directive is for places where consumer-price gains
breached local targets by a ``relatively large margin,'' the
National Development and Reform Commission said in a statement
on its Web site today. Price increases connected with energy-
efficiency policies are exempt, the agency said.


Read more at Bloomberg Emerging Markets News

Sri Lanka's Inflation Probably Accelerated in July on Oil and Food Prices

(Bloomberg) -- Sri Lanka's inflation probably
quickened in July for the first time in four months as higher
oil and food prices offset slowing loan growth.

Consumer prices in the capital Colombo rose 15.5 percent
from a year ago, after gaining 13 percent in June, according to
the median forecast of 12 analysts in a Bloomberg survey. The
statistics department's index, the key inflation gauge watched
by the central bank, is due tomorrow at 3 p.m. in Colombo.


Read more at Bloomberg Emerging Markets News

TIPS, A Bad Tip on Inflation in 2006, Lose Value as Oil Closes In on $100

(Bloomberg) -- Treasury investors say inflation is
abating, even if the oil bulls are right and crude heads to $100
a barrel.

Pacific Investment Management Co. and Fidelity Investments
sold Treasury inflation-protected securities maturing next year,
confident that consumer prices will remain in check. Money
managers lost as much as $275 million on so-called TIPS in the
second half of 2006 because oil fell from record highs and
gasoline prices dropped.


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

Kuwait Revalues Dinar, Fuels Speculation Other Gulf Nations to Follow Suit

(Bloomberg) -- Kuwait revalued the dinar against
the dollar for a second time this month to curb inflation,
fueling speculation other Gulf countries will follow suit.

The central bank, which manages the dinar against a basket
of currencies, lifted its currency 1.7 percent. The dinar has
been dragged lower by a slump in the dollar, increasing the cost
of imports to Kuwait and accelerating gains in consumer prices.
The United Arab Emirates' dirham strengthened the most in almost
four months today and the Saudi riyal also advanced.


Read more at Bloomberg Currencies News

Colombia Peso Reaches One-Month High on Speculation Inflation Will Slow

(Bloomberg) -- Colombia's peso strengthened to a
one-month high on investor expectations that inflation will
slow, attracting buyers to the nation's assets.

The peso gained 0.4 percent to 1,910.65 per dollar,
reaching the strongest since June 20, according to the Colombian
foreign-exchange electronic transactions system, known as SET-
FX.


Read more at Bloomberg Currencies 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

Sri Lanka's Central Bank Keeps Key Rate Unchanged at Highest Level in Asia

(Bloomberg) -- Sri Lanka's central bank kept its
benchmark interest rate unchanged at the highest level in Asia
to help bring inflation below 10 percent.

The Central Bank of Sri Lanka maintained its repurchase
rate at 10.5 percent for a fifth straight meeting, the Colombo-
based bank said in a statement today. Ten out of 11 analysts in
a Bloomberg News survey predicted the decision. One expected a
25 basis point cut.


Read more at Bloomberg Emerging Markets News

Japan's Government Bond Futures Gain on Speculation Consumer Prices Fell

(Bloomberg) -- Japanese bond futures rose on
speculation consumer price data this week will reduce the need
for the central bank to raise interest rates next month.

The inflation rate excluding fresh food slowed for a fifth
month in June, according to a survey of economists by Bloomberg
News before the July 27 release. Ten-year notes last week had the
first gain since June as investors sought the relative safety of
government debt because of losses on securities tied to U.S.
mortgages.


Read more at Bloomberg Bonds News

Treasuries Rise as Federal Reserve Trims Forecast for U.S. Economic Growth

(Bloomberg) -- Treasuries rose as the Federal
Reserve trimmed its forecast for U.S. economic growth this year
and next on weaker-than-anticipated home building, while keeping
its inflation projections unchanged.

Fed Chairman Ben S. Bernanke predicted in testimony before
Congress that U.S. economic growth will pick up slightly next
year and inflation will gradually recede.


Read more at Bloomberg Bonds News

Bernanke: Housing drag to ease, inflation a worry

(Reuters) - "Overall, the U.S. economy appears likely to expand at a moderate pace over the second half of 2007, with growth then strengthening a bit in 2008 to a rate close to the economy's underlying trend," he said in semiannual testimony prepared for delivery to the House of Representatives Financial Services Committee.




But Bernanke warned that a slowdown in the U.S. housing market may last longer than anticipated, and said that further hikes in energy and commodity prices could spark inflation and push closely watched core inflation up.


Read more at Reuters.com Business News

Canada Stocks May Rise on Canadian Pacific Buyout Talk, Slower Inflation

(Bloomberg) -- Canadian stocks may rise for a second
day after a report said Canadian Pacific Railway Ltd. may receive a
takeover bid and inflation unexpectedly fell.

Canadian Pacific, the nation's second-largest railroad, may be
bought by a group led by Brookfield Asset Management Inc., the
Globe and Mail said, citing unidentified people familiar with the
matter. The first decline in inflation in eight months could boost
shares of financial companies as pressure subsides for the Bank of
Canada to raise interest rates.


Read more at Bloomberg Stocks News

UPDATE 1-U.S. overall producer prices fall in June, core up

(Reuters) - WASHINGTON, July 17 - Cheaper energy helped
reduce overall U.S. producer prices in June, according to a
Labor Department report on Tuesday, but a closely watched
measure of core inflation kept rising at a pace likely to keep
concerns about inflation on policy-makers' minds.




The producer price index -- a gauge of prices paid at the
farm gate and factory door -- declined by 0.2 percent last
month after shooting up by 0.9 percent in May, the first
decline since January.


Read more at Reuters.com Economic News