Dec 9, 2010 ~ Business

Thursday, December 9, 2010

The Pound Gains Versus Euro Before Bank of England Rate Decision

The pound strengthened for a fourth day against the euro on bets the Bank of England will judge the economic recovery strong enough to maintain its program of buying bonds unchanged.

The pound fell to its lowest level since Nov. 23 against the dollar. Central bank governor, Mervyn King, is likely to maintain the quantitative easing program, called unchanged at 200 million pounds ($ 316,000,000,000), according to 34 economists in a Bloomberg survey. Analysts also expect the bank keeps main interest rate at 0.5 percent, another poll.

"The pound has held up pretty well, and I do not see anything that would change that," said Kathleen Brooks, director of London-based research at FOREX.com, a unit of online currency trading company Capital Gain . "Growth is holding up well, and that's getting QE on the back of the platform."

The pound was little changed at 83.89 pence per euro at 11:20 am in London, after touching 83.71. Sterling was 0.4 percent weaker at $ 1.5742, after moving up 0.2 percent at $ 1.5841.

Government bonds advanced, with the 10-year yield fell two basis points to 3.52 percent, while the two-year security fell two basis points to 1.1 percent.

Britain's currency rose 1.2 percent against the dollar after meeting the political entity before the November 4, when it held the types and bonus plan unchanged. Gilts rose that day, pushing the 10-year yield by five basis points.

Inflation

Investors increased their inflation expectations, leading the equilibrium rate of 10 years, which measures the performance gap between traditional values and linked to inflation above 3 percentage points for the first time since Nov. 24. The rate was 3.1 percentage points.

The pound has gained 1 percent in the last month, according to Bloomberg indexes of correlation-weighted currencies, which track a basket of 10 currencies of the developed countries. Since late 2009, the British currency has lost 3.8 percent.

Gilts broke two days of losses as a report showed home prices fell last month, indicating the recovery may fail.

Prices fell 0.1 percent after gaining 1.8 percent in October, Halifax, the mortgage lending division of Lloyds Banking Group Plc, said in a statement. An index of UK growth in business services travel agencies to fund managers fell last month, Markit Economics Ltd. and the Chartered Institute of Purchasing and Supply said last week.

The dollar strengthened for a fourth day after the shares compared their progress, fueling demand for the relative safety of U.S. currency.

The dollar rose against the euro and the pound as the benchmark Stoxx 600 index trimmed gains to 0.2 percent to 0.7 percent.

"We have seen an unfortunate culture of risk-off in markets throughout the morning," said Daragh Maher, deputy head of global currency strategy at Credit Agricole Corporate & Investment Bank in London. "I suspect that given an offer to the dollar and caused the euro down. We have seen the stock markets open well in Europe and then fall very rapidly."

The U.S. currency rose 0.4 percent to $ 1.3214 per euro at 11:26 am in London from $ 1.3262 yesterday. The dollar rose 0.3 percent against the pound.

The dollar index, which tracks the greenback against the currencies of six major U.S. trading partners, including the euro, yen and sterling, rose 0.2 percent to 80,169.

SPDR Gold Trust Options Ponga Beat Calls for the first time in two weeks

Sales volumes of option-linked to the SPDR Gold Foundation, the largest exchange-traded fund backed by gold, topped the options trading for the first time in more than two weeks.

The volume in put options, which give the holder the right to sell the shares at a fixed price and date, amounted to 192,122 contracts yesterday, the highest since Nov. 12. Exceeded trade options, giving the holder the right to purchase over two consecutive days, according to the data.

Gold futures traded in New York reached a record $ 1432.50 an ounce on 07 December and fell by 3.3 percent since then, comparing this year's gains to 26 percent. The most popular option in the future given the right to buy gold at $ 2,000 by November next year.

"The market view of lower prices until the end of the year is certainly reflected in the behavior of the last days' trading options, favoring short-term makes the calls," said Bayram Dincer, analyst LGT Capital Management in Pfaeffikon, Switzerland. "This is not a surprise, as the breakdown of gold and the new all-time highs were not sustainable in the short term."

Gold is heading for 10 consecutive annual gain, after the government spent billions of dollars and keep borrowing costs low to boost the economies affected by the worst global recession since the Second World War. The metal has outperformed global equities, U.S. Treasuries, and most industrial metals this year.

Silver Options

Trading in options on the iShares Silver Trust, the largest exchange-traded fund backed by silver, rose to its highest level in almost a month. Volume reached 201 381 on 7 December, the most since November 9 and Sunday 160,593.

The volume in call options, giving the holder the right to purchase, options trading exceeded sales in two days and it has since Nov. 17, according to the data.

Silver futures traded in New York peaked at 30 years of $ 30.75 an ounce on 07 December and declined 7.1 percent since then, cut the gain of this year to 70 percent. The most popular option in the future given the right to sell the silver to $ 15 in February next year.

European shares rose to a maximum of two years

European shares rose to a maximum of two years as reports reassured investors that the global economic recovery is intact. The bags of Asia and America's Future in stock indexes also advanced.

ASML Holding NV advanced 6.1 percent after the company raised its outlook for bookings in the fourth quarter. BG Group Plc rose to the highest in 2 1 / 2 years after that you get about 600 million barrels of oil from Tupi in early trade in Brazil and Guara fields. Volkswagen AG led automakers lower as China said it could end the tax incentives for the purchase of cars next year.

The Stoxx Europe 600 Index advanced 0.2 percent to 275.49 of 11:05 am in London, heading for the highest close since September 2008. The extent of European shares was up 8.6 percent this year, corporate profits and improving the Federal Reserve announced a program of 600 billion U.S. dollars of bonds with an option to purchase to help the U.S. recovery. UU ..

"The actions will be seen as an attractive focal point," said Chris Tinker, the founder of the London Pound Investment Services Ltd., on a Television Countdown with Maryam Nemazee. Improve free cash flow and earnings will be "the key support that will boost the capital market outlook. Let's see a more stable environment" in the coming year.

500 of Standard & Poor's Index, which expires this month rose 0.4 percent. The MSCI Asia Pacific Index rebounded 0.8 percent.

Japan's economy grew faster than the government initially estimated in the third quarter and employers in Australia last month added more than twice the number of workers that economists had forecast. A report today may show the U.S. initial jobless claims decreased.

Finance companies

Financial companies were the performers second best today among groups MSCI Asia Pacific Index's 10 industry. Mitsubishi UFJ Financial Group Inc. rose 3.7 percent to 417 yen. In Sydney, Westpac Banking Corp. gained 2.4 percent to $ 22.29.

The banks reported yesterday the biggest increase in the S & P 500 from 24 industries, bringing to 3.4 percent.

ASML Holding NV rose 6.1 percent to € 27.91 after the company raised its outlook for bookings in the fourth quarter. The chip maker now expects bookings over 2 million euros.

BG Group advanced 2.3 percent to 1317.5 pence, heading for the highest closing level since May 2008. The oil and gas producer, said it expected "very low" costs of the technical unit for the initial phase of developing the fields of Tupi and Guara in the Santos Basin offshore Brazil. The company also said it will receive about 600 million barrels of initial operations.

Havas, Hochtief

Havas SA, which owns the advertising agency Euro RSCG Worldwide, ITV Plc advanced after Nomura Holdings Inc. raised its rating on the shares to "buy" from "neutral." Havas gained 2.5 percent to 3.51 euros. ITV rose 1.2 percent to 73.65 pence.

Hochtief AG rose 2.3 percent to € 64.84. The company's new investor, Qatar Holding LLC potential plans to increase its stake above 9.1 percent, announced the purchase of more shares in the stock market, Financial Times Deutschland reported today, without saying where it obtained the information. Qatar, which initially plans to buy new shares, aims to increase its influence in the German carmaker as the Spanish-language competitor Actividades de Construccion y Servicios SA is attempting a hostile takeover of Hochtief, the newspaper said.

Club Med

Club Méditerranée SA gained 5.3 percent to € 14.49 in the French operator of 80 centers around the world said its loss for the year fell to 14 million euros (18.6 million dollars) 53 million euros a year earlier.

Volkswagen fell 7 percent to € 120.20, while Porsche fell 3.9 percent to € 62.16. An indicator of automobile manufacturers in the Stoxx 600 lost to 2.8 percent, the biggest drop of the 19 industry groups. China may end tax incentives for the purchase of cars next year, Xiong Chuanlin, deputy secretary general of the Association of Automobile Industry of China, said at a news conference today in Beijing.

Standard Chartered Plc, the British bank that receives more than three quarters of revenue from Asia, dropped 3.4 percent to 1,814.5 pence. in the second half of Standard Chartered "income levels" were "broadly flat" over the past six months, the company said in a statement. The net interest margin has fallen "split" this year from 2009 throughout the company said.

he dollar may strengthen to 88 yen after finding support as indicated by the graphic Ichimoku, Commerzbank AG, said.

"Dollar-yen continues to recover after testing support at 82.32, the baseline of nine days, known as the kins," said Karen Jones, head of fixed income, commodities and currency technical analysis Commerzbank in London, in an interview today. "Kinser's support comes in at 82.48 today. Also supported on 82.31, 50 percent Fibonacci retracement of the move down from May."

This area represents "a short term basis, reinforced by the Ichimoku" said Jones.

Ichimoku letters are used to predict the direction of a coin by analyzing the midpoints of highs and lows. Line charts conversion of the sum of the highest high and lowest low over the last nine trading days. The baseline is the same calculation in the last 26 days.

The dollar fell 0.1 percent to 83.95 yen at 10:07 am in London. The last time it reached 88 yen on September 28.

"Dollar-yen is still above the Ichimoku, and our longer term outlook remains positive," said Jones. "Our goals are high September at 85.94, then the 200 day moving average around 87.48 before 88.00, a significant turning point."

The tag refers to the area between the lines first section and the second leader in the table and is used to show an area where buy orders may be grouped.

In technical analysis, investors and analysts charts on trading patterns and prices to forecast changes in the security, commodity, currency or index. Fibonacci analysis is based on the theory that prices rise or fall in certain percentages after reaching a high or low. NTE Lead Japan

Hedge Funds Return 0.6% in November, Beating Japan stocks as lead managers

Hedge funds gained 0.6 percent in November, led by Japanese businessmen, and outperformed the global capital markets that fell during the month, said Eurekahedge Pte.

Hedge funds posted positive results for the fifth consecutive month, the Eurekahedge Hedge Fund Index, which tracks over 2,500 funds worldwide, increasing by 7.9 percent in the first 11 months, the data provider with headquarters in Singapore, said in a report by email. About $ 5 million for industry last month, Eurekahedge said, based on data from 32 percent of the funds so far have reported their November performances.

Managers who invest in Japan and the strategies that equity issues led gains in the month, helped by a rise in Japanese stocks, the preliminary report showed. The MSCI World Index fell 2.4 percent in November.

Monitoring the extent of funds from Japan and focused won 2.4 percent, the best performance among seven regional indices as the benchmark Topix index rose 6.2 percent during the month. The Eurekahedge Eastern Europe and Russia followed Hedge Fund Index, increased 1.7 percent, while index tracking funds in North America has added 1 percent, he said.

Among the seven regional indices, only the Eurekahedge Emerging Markets Hedge Fund Index declined, the report said.

For the strategy, event-driven funds, which invest in companies in transaction processing, such as mergers or divisions, were the best performers, returning 1.4 percent, helped by increased business this year, Eurekahedge said . By contrast, the index tracking funds bond coverage declined by 0.8 percent, the worst performance.

The research firm plans to release a full report later this month.

Hedge funds are mostly private pools of capital whose managers participate substantially in profits from their speculation on whether the asset price increases or decreases.

Follow winding Gabrielli Petrobras $ 40 million of debt plan

yield of Petroleo Brasileiro SA bonds are rising more in 12 months after the Brazilian oil company controlled by the state, said it plans to increase the debt by up to 60 percent to 107 billion U.S. dollars over the next four years.

The yield of 5.75 dollar bonds of the company percent in 2020 rose 81 basis points last month to 4.88 percent. The yields of emerging market bond business rose 40 basis points, or 0.40 percentage points over the same period, data from JPMorgan Chase & Co. show.

CEO Jose Sergio Gabrielli said in Rio de Janeiro on 7 December, the company plans to raise between $ 30 million and $ 40 billion of new debt over the next four years to fund the largest investment plan in the oil industry . Petrobras, which has 67 billion U.S. dollars of total debt, has not issued bonds this year after selling 6.75 billion U.S. dollars in international markets in 2009.

"Investors are betting that they will see a lot of new supply of debt of Petrobras," Jack Deino, who oversees about $ 1.6 billion of emerging market debt at Invesco Inc. in New York, said in a telephone interview. "That's why we are underperforming. There is also uncertainty about when to get the new offer and how much of it."

Petrobras bonds was 112 basis points more than the government takes note of similar maturity on 07 December, the biggest gap since August. The yield is 129 basis points below the 2020 dollar bonds of OAO Gazprom, the Russian monopoly over gas exports, which rose 31 basis points in November and are paying 6.312 percent today.

Sale of Shares

Rio de Janeiro-based Petrobras plans to finance investments in the coming years by selling bonds and bank loans after the conclusion of the world's largest share offering in September, Gabrielli told reporters in Sao Paulo on 06 December. The company, which sold $ 70 billion of shares on 24 September, aims to invest 224 billion U.S. dollars until 2014 to develop reserves on the coast of Brazil.

Petrobras shares fell 9.2 percent in the last month, leaving 32 percent this year.

The company needs to roll over $ 38 billion debt until 2014 as it seeks to double production over the next decade, Gabrielli said on 9 November.

"Gabrielli statements have definitely had an impact," said Juan Cruz, corporate bond analyst at Barclays Plc in New York, in a telephone interview. "Investors are demanding to be paid more by uncertainty."

Petrobras has "definite plans" at this time to sell bonds, Gabrielli said yesterday. The office of the newspaper company declined to comment in an emailed statement.

The company offers $ 6,750,000,000 of foreign debt in 2009 was more than 5.55 billion U.S. dollars which raised over the past 10 years.

Oil Bill

Brazilian President-elect Dilma Rousseff, 62, plans to reappoint Gabrielli, an economist trained at Boston University, as chief executive of Petrobras, a government official briefed on the decision, said on 7 December. She takes office January 1.

Brazil's lower house of Congress approved on December 1, new regulations for oil to increase government control over the energy industry and reduce competition against Petrobras. The regulation will allow the company to be the sole operator of oil fields where licenses have been auctioned. Petrobras will be able to explore all the fields in the areas designated as "strategic."

President Luiz Inacio Lula da Silva, who sent the bill to Congress to sign this month.

"More difficult to justify"

"Even if regulation ensures the assets, the risk is actually higher, because it means more spending and cash flow has a few years to begin to come," said Eduardo Suarez, emerging markets strategist at RBC Capital Markets in Toronto , in a telephone interview. "It's much harder to justify Petrobras is ranked higher than the government now that the government controls 60 percent of the population."

Petrobras is rated Baa1 by Moody's Investor Service, the investment grade lower third and two steps above the Brazilian government's Baa3.

Gabrielli said in an interview of 03 May in Sao Paulo that the company has no plans to sell bonds this year because it is reaching the "upper limit" of the debt ratios before putting credit ratings at risk.

Messages left for the Moody's analyst Thomas Coleman of New York and Milena Zaniboni in Sao Paulo in S & P were not returned.

The concern European countries may have to restructure their debts after ransoms for Ireland and Greece led investors to flee Petrobras bonds in recent weeks, according to Moura Jansen, corporate bond analyst at BCP Securities in Rio de Janeiro .

"There is absolutely more to do with global concerns that the foundations of Petrobras, said in a telephone interview. "As soon as the market is a little more comfortable with the situation in Europe and other macroeconomic point, things might calm down a bit and yields may return."

Default Swaps

The extra yield investors demand to own Brazilian government dollar bonds instead of U.S. Treasuries rose 6 basis points yesterday to 168, according to JPMorgan's EMBI + index.

The cost of protecting Brazil's bonds against default for five years rose 3 basis points to 109, according to CMA. Swaps credit-default pay the buyer face value in exchange for the underlying securities or the cash equivalent of a government or a company fail to adhere to its debt agreements.

The real fell 0.5 percent to 1.6903 per dollar.

The performance of the overnight interest rate futures contract in January 2012 rose 3 basis points to 12.07 percent.

Tupi, Libra

Petrobras is the Tupi field development offshore and may have a minimum stake of 30 percent in the field of government Libra, the largest oil discoveries in the Americas since Mexico's Cantarell in 1976. Tupi and Libra, which may hold as much as 8 billion barrels and 15 billion barrels, respectively, are in a deep water region known as the pre-salt along the coast of Brazil.

The company will invest approximately $ 7 billion to $ 8 billion through 2014 in deepwater fields it bought the government in exchange for new shares, financial director Almir Barbassa, said last month.

Petrobras bonds are also behind Brazilian corporate bonds in the last month. Yields on debt sold by Brazilian companies rose 37 basis points during that period, according to JPMorgan.

"The changes in capital spending program will be the most important factor going forward," Suarez said RBC.

Brazil's central bank kept its options open for when interest rates rise to cool inflation running at more than five years after leaving its benchmark rate unchanged yesterday at the last meeting chaired by the bank president, Henrique Meirelles.

Policy-makers Tombini Alexandre, who is scheduled to hit next month Meirelles, voted unanimously to keep the Selic rate unchanged at 10.75 percent. The decision matched the forecast of 48 of 51 analysts surveyed by us. Three economists forecast an increase of at least a quarter point.

The eight-member board said in a statement, said it faced a "less favorable scenario" that at its last meeting, although they needed "more time" to assess the economic impact of the new reserve requirements on banks to curb credit growth.

"There is no smoking gun here that are going to hike rates in January," said Marcelo Salomon, chief economist for Brazil at Barclays Capital, in a telephone interview from New York. "The markets will re-evaluate the likelihood that they will walk and in January."

Traders are betting that the bank will raise borrowing costs by a half point at its next meeting in January, according to estimates based on future interest rates. About 100 economists in a central bank survey published Dec. 3, said he expected a half point increase in January.

The bank of 03 December, the announcement of an increase in capital and reserve requirements on bank deposits has introduced uncertainty about the timing and magnitude of rate increases, said Gray Newman, chief Latin America economist at Morgan Stanley .

'Late Again'

"Today, the language does not clarify that at all," Newman said in a telephone interview from New York. "It leaves the door open for them, could be postponed once again."

the world's eighth largest economy will grow 7.54 percent this year, its fastest pace in more than two decades, according to the latest survey of the central bank. The gross domestic product probably expanded 0.4 percent in the third quarter of the last three months, according to the median estimate of 35 analysts surveyed by us before today's GDP report.

Retail sales rose 11.8 percent in the year to September, the fastest pace since March. Unemployment fell to a record low of 6.1 percent in October.

Domestic demand, driven by consumer loans growing at a rate of 20 percent per year, is driving an acceleration of inflation.

Inflation Surge

Consumer prices, measured by the benchmark IPCA index, rose 5.63 percent in November from a year earlier and 0.83 percent from October, the biggest monthly increase since April 2005.

Inflation expectations for 2011 have been accelerated to 5.2 percent from 4.8 percent in August and 4.5 percent in March, according to central bank survey.

"The inflation outlook is deteriorating and calls for a policy response," said Marcelo Carvalho, chief of research in Latin America at Banco BNP Paribas Brasil in Sao Paulo. Carvalho Tombini expected to raise the Selic rate by at least 50 basis points next month.

Tombini, who has been aboard the bank since 2005, won the approval of the Senate committee to be the next president of the bank on December 7. In his confirmation hearing echoed the comments made by Meirelles, that high levels of reserves have an impact on the economy, although they are not a substitute for the traditional tools of monetary policy.

Dilma Rousseff President-elect has pledged to curb spending next year in an attempt to reduce real interest rates in Brazil, the highest in the Group of 20.

Higher borrowing costs are also putting pressure on the real, as investors buy higher-yielding currencies with borrowed funds at lower rates. The real, which is the best performer among 16 major currencies tracked by us in the last month, weakened 0.5 percent to 1.6903 per U.S. dollar yesterday.

"Despite the statement raises questions about when to resume rate increases, policy makers should lower inflation expectations and a strong fiscal adjustment to avoid raising rates," said Pedro Tuesta, a Washington-based economist for Latin America at 4Cast Inc. "won 't enough time for that before the January meeting."

Fluctuations in currency exchange rates will increase next year growth rates differ

Fluctuations in currency exchange rates will increase next year growth rates differ, central bankers try to sustain the recovery and European leaders battle a sovereign debt crisis, according to UBS AG.

Annual price fluctuations in the exchange rate can double in some major currencies, UBS strategists predicted the currency trader world's second largest. The euro may vary between $ 1.1 and $ 1.5, compared with $ 1.1877 to $ 1.4579 so far this year, and the U.S. dollar you can play as low as 70 yen to 100 yen in 2011, twice the range 80.22-94.99 current year, the company said.

"The divergence between the strength in emerging markets and unusual levels of uncertainty in major world economies will make this super volatility," Mansoor Mohi-Uddin, the Singapore-based head of global currency strategy at UBS, said in a telephone interview. "There is also a high risk of error in policy decisions regarding interest rates, quantitative easing and fiscal adjustment."

UBS, the largest currency trader after Deutsche Bank AG, said the companies should increase the protection against further fluctuations in exchange rates. Corporations in the U.S., Japan and Europe have increased the percentage of projected revenues protected against fluctuations in exchange rates to a record, the latest quarterly survey of customers of JPMorgan Chase & Co. on 1 October showed.

Standard Chartered Plc, the most accurate currency strategists said the euro's weakness will extend into next year as the crisis of sovereign debt in the region undermines economic growth.

Fed Speculation

Standard Chartered, the forecaster superior general of the six quarters ended September 30 ,predicted that the euro may weaken to less than $ 1.20 in mid-2011 from about $ 1.3252 today.

Just last month, the euro reached $ 1.4282, the strongest level since January, as traders sold the dollar on speculation the Federal Reserve lowers the dollar by printing more money to purchase $ 600,000 million of Treasury bonds called quantitative easing. The Fed started buying those last month.

The implied volatility of options for major exchange rates averaged 12.34 percent this year compared with an average of 10.6 percent since January 2000, according to JPMorgan Chase & Co. data. The bank index options three months of 2010 hit its high of 16.95 percent in May and was at 12.49 today.

"In general, investors will become more aware of the risk in 2011," said Mohi-uddin. "For over several years at least, volatility will be structurally higher."

Australia Dollar rises as employers add more jobs than economists forecast

The Australian dollar strengthened against all its major counterparts after a government report showed employers added more than twice as many jobs as economists' forecasts.

Australia's currency gained for the first time in four days against the dollar as the extra yield bonds of the South Pacific nation to offer over Treasuries widened and traders added to bets the Fed will increase rates interest. New Zealand dollar fell for a second day against Australia after the country's central bank said smaller borrowing costs will likely increase "in a more limited extent" in the next two years.

"This is a significant finding and supports the Australian dollar," said Robert Rennie, chief currency research in Sydney at Westpac Banking Corp., the second largest bank in Australia. "The market is more or less full price for a hike in September next year, today's data suggests that you might want to start bringing that forward."

Australia's currency rose 0.7 percent to 98.65 U.S. cents as of 16:17 in Sydney from New York yesterday, after weakening 1.4 percent in the last three days. The so-called Aussie gained 0.4 percent to 82.66 yen, and appreciated by 0.6 percent to NZ $ 1.3181.

New Zealand dollar advanced 0.1 percent to 74.85 U.S. cents and traded at 62.71 yen from 62.82 yen.

Australia's currency rallied after the statistics bureau said employers added 54,600 workers in November, reducing the unemployment rate to 5.2 percent from 5.4 percent in October. Economists expect 20,000 new jobs, according to a survey.

Rate Outlook

Reserve Bank of Australia Governor Glenn Stevens increased the benchmark rate by 41 basis points over the next 12 months, compared to an expected 24 basis points late last week, according to the rate of Credit Suisse AG.

The extra yield investors get from the celebration of Australia notes two years rather than Treasuries of similar date was extended 16 basis points to 4.38 percentage points, the biggest increase since October 7.

New Zealand dollar fell to a six-week low against Australia as economists at Bank of New Zealand Ltd. and TD Securities Inc. downgraded its predictions for when the RBNZ will raise rates.

The kiwi fell as low as NZ $ 1.3179 per Australian dollar, the weakest since Oct. 27.

Governor Alan Bollard left unchanged the rate of New Zealand's benchmark by 3 percent, saying the country's worst earthquake in 80 years may slow economic growth in the short term.

'It provides for an increase "

"Interest rates are now expected to grow in a more limited extent in the next two years that points in the September statement," Bollard said in today's statement accompanying the political decision. "Downside risks to global growth and export prices persist."

The central bank estimates that the average bank's performance to three months will be little change until the second quarter and expected to rise to 3.8 percent by the end of 2011, down from 4.1 percent projected in September.

"The currency has been high inhibition of recovery, and the general tone of the bollard was pessimistic," said Tim Kelleher, vice president of institutional banking and markets in the Commonwealth Bank of Australia in Auckland. The kiwi may undermine 73.75 U.S. cents, he said.

The nation's rate of exchange of two years, a fixed payment made to receive floating rate that is sensitive to the expectations of the policy, was at 3.84 percent, after falling to 3.80 percent after the decision rate, the lowest since Oct. 28.

Wheat quality up by March as Australia Drops

Wheat prices may extend gains and trade at high levels until early 2011, as reduction of crops in Australia, the fourth largest exporter, in addition to the supply side, a U.S. executive Wheat Associates, said.

"The market may be necessary to go higher before it's over," said Vince Peterson, vice president of group operations abroad, in an interview in Perth. "We'll be at these higher ranks at least until the first quarter."

Wheat prices rose to a maximum of two years in August, after Russia, the third largest exporter last year, banned shipments through the country's worst drought in half a century. Wet weather is to degrade crops in Australia and the delay in harvesting after the rain had damaged the quality of the previous crop in Germany and Canada.

"There were a lot of buyers are expected to harvest in the southern hemisphere in Argentina and Australia to come to see if prices moderate somewhat, but the situation has done the opposite," said Peterson. The increased demand for U.S. wheat, the largest exporter, will depend on the crop in Australia, he said.

Wheat for March delivery on the Chicago Board of Trade rose 0.6 percent to $ 7.89 a bushel at 12:23 pm in Singapore after rising to a maximum of four months in August, $ 11 on 7 December. The price has gained 46 percent this year.

'Fragile' Market

"Frankly, what does the fragility of the wheat market really is," said Peterson. "Five months ago we'd be giving away, we had a lot."

Dry weather for the U.S. wheat crop during the winter can also help support prices in the next year, while the future will be driven by the prospect of spring planting, he said. U.S. Wheat Associates is one of Arlington, the development organization based market in Virginia.

U.S. can not have the logistical capacity to meet growing global demand, after the rains cut the crop quality in Canada and Australia, Abdolreza Abbassian, an economist at the United Nations Organization and Agriculture Organization, said in an interview .

As many as 8 million metric tons of wheat production in Australia may be downgraded by the excessive rains, while production in Canada suffered from wet weather, pushing importers to seek alternative sources said.

Asian stocks gained, driving the benchmark index to its advance sixth in seven days, as reports on economic growth better than expected in Japan and employment in Australia increased confidence in a regional recovery.

Mitsubishi UFJ Financial Group Inc., Japan's biggest bank, traded, rose 3.7 percent. Westpac Banking Group Ltd., the second largest in Australia
bank

by market value, rose 2.4 percent. BHP Billiton Ltd., the world's largest mining company, rose 1.3 percent in Sydney after copper futures rose to a record yesterday in New York. Innolux Chimei Corp. led declines by Taiwanese manufacturers of flat screen following European Union fines.

"The Asia's growth momentum remains intact," said Pauline Dan, chief investment officer of Hong Kong at Samsung Investment Trust, which oversees about $ 72 billion in assets. "There are still a lot of uncertainties out there. The monetary tightening in China will remain a key risk in the next year, along with geopolitical risks and debt issues in Europe."

The MSCI Asia Pacific Index rose 1 percent to 133.63 as of 17:10 in Tokyo, with five shares rose for every four that declined. The indicator fell 0.6 percent in November after two straight months of gains growing concern that China's measures against inflation, the debt crisis of Europe, and tensions on the Korean peninsula can cool a global economic recovery .

Japan's Nikkei 225 Stock Average advanced 0.5 percent. Gross domestic product grew at an annualized rate of 4.5 percent in the three months ended September 30, faster than the 3.9 percent reported last month, the Cabinet Office said today. The median forecast of 19 economists surveyed by us was for an expansion of 4.1 percent.

Jobs Australia

Australia S & P / ASX 200 rose 0.9 percent. The number of people employed 54,600 won as of October, the statistics office said today. That compares with the median forecast of an increase of 20,000 in a survey of 26 economists. The unemployment rate fell to 5.2 percent from 5.4 percent a month earlier.

South Korea's Kospi index gained 1.7 percent, the biggest increase among benchmark stock indexes in Asia-Pacific region, China and Shanghai Composite Index fell 1.3 percent, the biggest decline. Taiwan TAIEX Index advanced 0.6 percent and Hong Kong's Hang Seng index rose 0.3 percent.

Future over 500 of Standard & Poor's rose 0.5 percent today. The index rose 0.4 percent yesterday to a maximum of two years, driven by a possible extension of U.S. tax cuts and after American International Group Inc. said it will pay a credit line of the Federal Reserve.

Advance Finance

Financial companies had the second-largest advance among the groups in the MSCI Asia Pacific Index's 10 industry, following information technology stocks. Mitsubishi UFJ rose 3.7 percent to 417 yen. Sumitomo Mitsui Financial Group Inc., No. 2 Bank of Japan, rose 3.5 percent to 2.712 yen. Mizuho Financial Group Inc., the No. 3, rose 2.9 percent to 141 yen.

"Investors already know that increased capital spending in the July-September period would increase the GDP of Japan, but took it as a good direction once the result was announced," said Masaru Hamasaki, who helps oversee about U.S. $ 17 billion as chief strategist at Toyota Asset Management Co. in Tokyo.

In Sydney, Westpac Banking rose 2.4 percent to $ 22.29. National Australia Bank Ltd., the nation's biggest lender to companies, rose 1.6 percent to U.S. $ 24. Australia and New Zealand Banking Group Ltd., the third largest bank in Australia by market value, rose 1.6 percent to $ 23.65.

Commodities Ratings

The MSCI Asia Pacific index gained 9.9 percent this year through yesterday, compared with gains of 10 percent for 500 of Standard & Poor's and 8.3 percent of the Stoxx Europe 600 Index. Shares in Asia's benchmark is valued at 14.6 times estimated earnings on average, compared with 14.4 times for the S & P 500 and 12.2 times for the Stoxx 600.

BHP Billiton, also the largest oil producer in Australia, rose 1.3 percent to $ 45.44 in Sydney. OZ Minerals Ltd., one of Australia's copper and gold miner, rose 0.9 percent to $ 1.67. CNOOC Ltd., China's No. 1 producer of offshore oil, increased 1.2 percent to $ 18.14 in Hong Kong in Hong Kong. Inpex Corp., the largest Japanese oil explorer, rose 2.5 percent to 454.000 yen.

The London Metal Exchange index of six metals such as copper and aluminum rose 1.5 percent yesterday to its highest since Nov. 11. Copper futures rose to a record close in New York, while oil rose today for the first time in three days.

Chimei Innolux tumbled 5.3 percent to NT $ 38.30, the second-biggest decline among the more than 1,000 companies in the MSCI index of Asia Pacific. AU Optronics Corp. fell 2.4 percent to NT $ 30.05.

Samsung, TSMC gain

European Union Competition Commission said yesterday that they were fined, Hannstar Display Corp., Chunghwa Picture Tubes Ltd. and South Korea's LG Display Co. a total of € 648.9 million ($ 864 million).

Samsung Electronics Co., the world's largest maker of display screens of liquid crystal-on sales, increased 3.2 percent to ₩ 917 000 in Seoul and was the largest single contributor to the MSCI Asia Pacific index. The company was not fined because it reported the cartel and provided "valuable", said Competition Commissioner Joaquin Almunia yesterday.

In Taipei, Quanta Computer Inc., the fourth world's largest manufacturer of notebook computers by shipments, increased 4.1 percent to NT $ 63.4 after saying November sales rose 12 percent from the month above.

Taiwan Semiconductor Manufacturing Co., which is the world's largest maker of chips for contract and morning reports, November sales, rose 2.9 percent to NT $ 70 in Taipei, its highest level since July 2007.

Nikkei 225 "Signs of the Cross of Gold 'Rally April high

Japan's Nikkei 225 Stock Average gold formed a cross call, indicating the meter may rise 11 percent through April of this year's high in the next quarter, according to Nomura Holdings Inc.

25-day moving average Nikkei surpassed the 200-day moving average today to form a cross of gold, which is considered by observers from table to be a bullish sign. The last event occurred in June 2009. The Nikkei was high this year on April 5, when it closed at 11,339.30 and can go back to that level in the quarter ended in March, said Shoichiro Yamauchi, a technical analyst at Nomura.

"A cross that the signal indicator is aimed at its April high as a short-term goal," Yamauchi said Nomura. "The 200 day moving average has been moving sideways, and far less for up and cross, indicating a strong uptrend that if the crossing was caused by a decrease in the measure."

The gold cross was formed last June 4 last year, when the 200-day moving average crossed below the average of 25 days, as he continued a decline that began in 2007. The Nikkei rose 17 percent after its April 2010 high. It has since fallen 9.6 percent to the 25 moving average fell through the measure and 31 May.

The Nikkei has risen 16 percent this year low on 31 August. Bull market is traditionally defined as earnings of more than 20 percent or more.

Woodside Petroleum Ltd., the second largest oil producer in Australia, agreed to a $ 1,100,000,000 loan syndicated to five years to refinance existing debt.

Australia and New Zealand Banking Group Ltd. and Bank of Tokyo-Mitsubishi UFJ Ltd. to organize the loan, which was provided by 34 banks, Perth-based Woodside said in a filing with the bag. Funds will be used to repay a loan of the same size, signed in May 2009, according to the presentation.

Woodside November 30, said his company Pluto liquefied natural gas, one of more than a dozen proposals for LNG development in Australia and Papua New Guinea, will cost over $ 900 million (881 million U.S. dollars) and begin six months after than previously projected. Assessment of the credit card company was reduced to BBB from A-by Standard & Poor's on 3 December.

Woodside reduced its costs for funding the new loan, said today, without being more specific.

The oil producer was paying 225 basis points more than the rate for London interbank offered in the loan signed in May last year, while it was classified as A-. The margin increased to 250 basis points for a BBB rating, according to the data.

Woodside shares rose 0.9 percent to $ 43.11 as of 10:10 pm in Sydney, comparing its decline this year to 8.8 percent. The S & P / ASX 200 has fallen 3.3 percent in 2010.

Oil Trader JPMorgan Eisenstein leaves in restructuring after Sempra Buy

Oil trader Ira Eisenstein left JPMorgan Chase & Co. last week that the U.S. bank the second largest by assets restructured its team following the acquisition by $ 1.7 billion units of RBS Sempra Commodities LLP.

"I am no longer there," he said in New York, Eisenstein, who spent 17 years at Morgan Stanley, JP Morgan before, in a telephone interview yesterday. "A number of people who have been leaving at the same time. They are just restructuring." JPMorgan cuts oil traders to make room for new staff, Eisenstein said. Kimberly Weinrick, JP Morgan spokesman, declined comment.

JPMorgan global unity of commodities, led by Blythe Masters, cut staff following acquisitions including units of Bear Stearns Cos. and UBS AG. The bank began firing on July 21 to cut the RBS Sempra eliminate overlap and less than 10 percent of the combination of "front office", said the Masters of the month.

Sempra Energy, based in San Diego, and Royal Bank of Scotland Group Plc, based in Edinburgh, completed a sale of $ 1.7 billion to JP Morgan Company metals, oil and energy and European companies gas on 1 July. "The acquisition nearly doubled the number of business customers the company may serve as raw materials," JP Morgan said in a Nov. 9 filing with the Securities and Exchange Commission.

"For every organization that is transforming its business, is likely to occur again looking to hire," said Dominic Mound, a commodity consultant Appointments Ltd., in Singapore today. "The demand for good people, quality remains strong."

Desktop Close

The bank may cut jobs at its industrial equipment metal in London, according to a December report a Metal Bulletin, citing unidentified people. At least two jobs will be cut to eliminate duplication, as saying.

In August, the bank said it will close the negotiating table on their own raw materials to meet the new U.S. curbs investment in banks, according to a person briefed on the matter. The closure affected less than 20 merchants in the unit, the source said.

Eisenstein, 52, said he joined the bank in April 2008 to help build the business physical oil trading. Among the people who worked with Andy Kelleher, former president of ConocoPhillips Supply & Trading, who joined the bank in August 2009. Eisenstein was an executive director at Morgan Stanley before joining JPMorgan in 2008, said an October presentation of JPMorgan. He began his career at Phibro Energy.

Bank of America is the largest U.S. lender by assets.

510 billion U.S. dollars in Norway's sovereign wealth fund, the largest in the world's second, said that his bet that Europe will leave the debt crisis is paying off in the bond markets in the region promise to deliver a "strong" recovery.

"This year, you're actually getting further compensated for the risk is obviously there, so I prefer to say we are more comfortable than less comfortable than a year ago, Yngve Slyngstad, director of Norges Bank Management Investments that manages the fund, said yesterday in an interview on Television Francine Lacqua. "In the future, I think the European bond market will be strong and healthy."

The Government Pension Fund, which last year reduced its holdings of European bonds peripherals, revived his interest in government debt Greek, Spanish, Portuguese and Italian into the third quarter, betting on a rebound after bailout Greece in May. In late September, the Spanish debt bond fund was the seventh largest holding.

Ireland's decision last month that Europe is concerned resort to emergency funds revived Spain and Portugal may have difficulty financing their budget deficits. To prevent the spread of markets and calm, the European Central Bank President Jean-Claude Trichet said Dec. 2 that the bank will delay the withdrawal of emergency liquidity, buying more government bonds members peripheral euro area.

'Worrying'

Europe remains a "worrying" situation, said Dominique Strauss-Kahn, managing director of IMF, in a speech yesterday in Geneva. The effects of the global financial crisis "are far from over" and the future of Europe "is more uncertain than ever," he said.

The Washington-based lender is contributing to Ireland's 85 billion euros (113 billion) rescue package, agreed upon after seven months in Greece with 110 million euros in ransom.

"Politicians have been doing a good job in 2010 to tackle a very difficult situation," said Slyngstad. "So we're confident that the politicians will do the work necessary to stabilize the market."

The difference in yield, or spread, between the Spanish 10-year bonds and German bonds has dropped to around 228 basis points, or 2.28 percentage points from a record 283 basis points in late November while the spread between the 10-year bond Ireland and European benchmark fell to 500 basis points, from a record 668 basis points on November 30.

Government trade flows of debt show that there is some appetite for bonds issued by Ireland, Portugal and Italy, according to ING Groep NV.

Peripheral 'sting'

"We've seen some reasonable bites peripheral role of the Buyside" wrote Padhraic Garvey, head of debt strategy at ING in Amsterdam developed markets, in a note today.

"The margins are usually generous enough to offset that risk, so some of the PIIGS inclusion in a portfolio is probably prudent," said Everett Brown, European bond strategist at IDEAglobal in London, in an email response to questions sent.

"The short term is a different story," he said, referring to the bonds issued by Portugal, Ireland, Italy, Greece and Spain. I am skeptical of the recent calm, and wait for tensions to resume soon, at least in January, when trading picks and countries to resume the financing of the auction. "

Norway oil fund administered by the country's oil wealth for future generations, allowing you to take a perspective of long-term investment and take more risks, Finance Minister Sigbjoern Johnsen said in August.

'Huge interest'

Investment in Europe accounted for 60.4 percent of the portfolio of fixed income fund as of September, an increase of 59.6 percent in June. The fund held 1150000000000 crowns ($ 190 million dollars) in fixed income securities at the end of the third quarter.

"We have up to 100 million euros in the European bond market and therefore have a huge interest in the job market," said Slyngstad. "For us, it's more about the situation between sovereign debt and banks are going to be fine."

The fund, which got its injection of capital for the first time in 1996, has been taking more risks, as it expands globally, the addition of stocks in 1998, emerging markets in 2000 and this property years to strengthen profitability and safeguard the wealth of the world's seventh largest oil exporter.

This year asked the Norwegian Finance Ministry, which oversees the fund's investments, to allow it to move in infrastructure and private capital. The proposal was endorsed last month by Ministry Strategy Council, an independent consultant, who said the fund has to take on more risk to achieve a real return of 4 percent.

China, India

The annualized real return fund since 1998 is 2.85 percent. He missed 23 percent in 2008. Most of the losses were recovered the following year, the fund earned 5.4 percent in the first nine months of this year.

Slyngstad said the fund, which invests Norway's oil wealth beyond its borders to prevent overheating of the economy, expects to add more fixed income investments in China, the fastest in the world, growing major economies, and India to attract more "global growth."

Late last year, the fund of 381 million crowns held in fixed income assets in China, of which SEK 240 million were in China Government International Bond. fund's benchmark is limited to holding a 5 per cent in Asia-Pacific bonds, 60 percent in Europe and 35 percent in the Americas. At the end of the third quarter, held 5.5 percent of its portfolio of fixed income in Asia and Oceania.

"Sooner or Later"

The China's gross domestic product will expand about 10 percent this year and next, the Paris-based Organization for Economic Cooperation and Development said on 18 November. India's economy grow by 8 percent, the OECD estimates. World production will expand by 4.2 percent next year, forecasts of the organization.

"We have no foreign exchange exposure in the Chinese renminbi and Indian rupee, as it is not permissible for a bond investor to invest a significant amount," said Slyngstad. "Sooner or later, we believe this will change."

Only Abu Dhabi has a bigger wealth fund, according to the Sovereign Wealth Fund Institute in California.

Oil rose for the first time in three days on signs that economic recovery is gaining strength and curb the excess fuel inventories.

Cattle futures after data showed Japan's economy grew faster than initially estimated in the third quarter. A U.S. government report yesterday showed crude inventories in the hands of the world's largest consumer of oil fell by almost three times more than expected. The Organization of Petroleum Exporting Countries will meet to review production quotas at the end of the week.

"The market is anticipating the improved fundamentals in 2011," said Hannes Loacker, analyst at Raiffeisen International Bank AG in Vienna. "But the oil inventory levels remain quite high, above the upper end of the last five years. So in the short term, risk appetite has to step up from an increase to $ 100."

Crude for January delivery rose to $ 1.14, or 1.3 percent, to $ 89.42 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $ 88.71 at 9:38 am London time. Brent crude oil for January settlement rose to 87 cents, or 1 percent, to $ 91.64 a barrel on London's ICE Futures exchange in Europe.

U.S. Crude inventories fell 3.82 million barrels last week to 355.9 million, the Energy Department said. Supplies are expected to decline from 1.4 million, according to the median estimate of 16 analysts surveyed by us.

"A little boost '

"If you look at this issue of oil as part of a trend that is definitely starting to see a decline," said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. "It seems to be something more fundamental and can provide a little boost. In the short to medium term, tax cuts are important for U.S. demand and consumption growth."

500 of Standard & Poor's raised to a maximum of two years in New York yesterday after the extension of President Barack Obama from Bush's tax cuts, was earlier this week. The gross domestic product in Japan grew at an annualized rate of 4.5 percent in the three months ended September 30, faster than the 3.9 percent reported last month, the Cabinet Office said in Tokyo.

Yesterday, oil futures in New York lost 41 cents to $ 88.28. Prices, 78 percent in 2009, have gained 12 percent this year.

U.S. inventories gasoline added 3.81 million barrels to 214 million last week, the biggest percentage increase since November 2009. The stock is forecast to decline 300,000 barrels, based on the survey. Supplies of distillate fuel, including heating oil and diesel, climbed 2.15 million barrels to 160.2 million, ending a 10-week reduction.

"Surge" Run

increase in U.S. inventories products that refiners boosted processing the most since October 2008. Capacity utilization rose 4.9 percentage points to 87.5 percent, the Energy Department report said. That's the highest since the week ended Sept. 17.

The data were "entirely driven by an increase in crude runs," said Michael Wittner, head of New York of the oil market research at Societe Generale SA, in a report yesterday. "The refineries processed more crude oil from week to week, which led to an unexpected draw oil. The product offer increased significantly."

Oil in New York can stop their advance beyond a 26-month high above $ 90 a barrel due to the resistance at the technical charts indicated by Bollinger Bands, according to Cameron Hanover Inc.

Crude oil rose to $ 90.76 a barrel on 7 December, the highest intraday price since October 2008. Investors can start selling when prices of contracts in advance of around $ 90.55, said Peter Beutel, president of the minister of energy in New Canaan, Connecticut. That is the higher of two Bollinger bands.

OPEC quota

OPEC, which pumps about 40 percent of world crude, remain unchanged production targets as oil climbs toward $ 100 a barrel, Shokri Ghanem, chairman of Libya's National Oil Corporation

The 12-member group would probably agree on an extension of quotas and focus on the compliance review of the production when it meets Dec. 11 in Quito, Ecuador, Ghanem said yesterday at Schiphol Airport in Amsterdam. Oil will rise to $ 100 "very soon" and once that happens, the group members can change their production strategy, he said.

Prices "are not reacting to supply and demand," said Qatar's Energy Minister Abdullah bin Hamad al-Attiyah said in an interview in Cancun, Mexico. Oil inventories are at record levels and economic recovery in Europe and the U.S. has been shaken, he said.

SocGen , HSBC U.S. Touch Sales to Europe Funds Evaporate

Societe Generale SA and HSBC Holdings Plc issued almost $ 3 billion of bonds denominated in dollars and a growing crisis of sovereign debt sales in Europe declined.

Société Générale, the second largest French bank, sold $ 2 billion of notes in an offering of three parts, the relative yields close to those paid in a similar operation three months ago, before Ireland's fiscal problems affected credit market. London-based HSBC issued $ 1 billion of debt in the sale of reference for the first time by a European bank in the U.S. more than a month.

"The senior unsecured market in Europe appears to be relatively closed for the moment, so the way forward is the dollar market, who is also looking a little more promising," said Jeroen van den Broek, a credit strategist at ING Bank NV in Amsterdam.

Sales in Europe are on track this week to stay over holiday periods excluded in a decade. Borrowers breakfast maker, Kellogg Co. Plc classified garbage Seagate Technology joined the banks in the use of U.S. bond market, the sale of 6.45 billion U.S. dollars of debt the day after President Barack Obama agreed to extend the tax cuts enacted by his predecessor.

Sales HSBC Financial Corp. 's, the reopening of the October issue maturing in January 2021, and the supply of Société Générale are the first reference sales of collateral by European lenders from Paris-based BNP Paribas, the largest world bank by assets, issued $ 650 million of notes on November 5.

European Banks

"These are highly rated institutions with offers relatively simple," said Scott MacDonald, director of credit and economic research at Aladdin Capital Management LLC in Stamford, Connecticut. "The French economy is not sitting in the house the dog and the UK economy appears to be moving in the right direction. If you look at what is entering the market, is the right flavor."

Elsewhere in credit markets, the extra yield investors demand to own corporate bonds worldwide debt instead of similar maturity fell 1 basis point to 172 basis points, or 1.72 percentage points below This year's high of 201 basis points in June, according to Bank of America Global Market Index Merrill Lynch's corporate general. The average yield of 3.94 percent.

Goldman Sachs Group Inc. is offering U.S. bonds loan without government backing, investors following the acquisition of about $ 6 billion in a single trade this month.

Morgan Stanley

The most profitable securities firm in Wall Street history won bidding for the debt after a limited competition that also included Morgan Stanley, according to people familiar with the matter who declined to be identified because the transaction was private. The purchase signals the largest brokers, who mostly stopped making markets in bonds as the global financial crisis peaked in 2008, was encouraged to carry larger inventories after values soared and purchase and sale of reviving.

"That would be a massive trade, an attention-getter," said David Castillo, managing director of San Francisco securities broker, Further Lane. "There is no liquidity in the market and a huge amount of money you are looking to be put to work, despite going on year-end, everyone wants to buy cheap."

Michael DuVally, a spokesman for New York, Goldman Sachs, declined comment. Mark Lake, spokesman for Morgan Stanley, did not immediately return a message.

Most traded bonds

Bond New York, Morgan Stanley, the U.S. bank sixth largest by assets, were the most actively traded U.S. corporate securities by dealers, with 121 transactions of $ 1 million or more, according to Trace, the bond information system in the prices of the Financial Industry Regulatory Authority.

The Barclays Capital Global Aggregate Bond Index lost 0.5 percent this month, bringing the gain this year to 3.67 percent.

Toshiba Corp., the second largest manufacturer of flash memory chips, sold 120 billion yen (1.43 billion) in bonds, increasing the supply of 80 billion yen. The Tokyo-based manufacturer sold 70 billion yen of five-year notes was 0.89 percent with a yield of 15 basis points more than the yen exchange rate, 30 billion yen in seven years, 1.22 percent bond with a spread 23 basis points and 20 billion yen, 10 notes of 1.68 percent with a margin 30 basis points.

junk bonds can win a third consecutive year in 2011, even if inflation accelerates, according to Morgan Stanley.

the high-yield debt, rated below Baa3 by Moody's Investors Service and lower than BBB-by Standard & Poor's, may return a 6 percent next year, assuming an increase of 75 basis points in "risk-free rates," Adam Richmond, a researcher at Morgan Stanley, wrote in a report yesterday. If interest rates remain unchanged, the Bank of New York, sees the speculative-grade bonds earning 9.5 percent.

Bank's risk of debt rises

The cost of insuring the subordinated bonds of European banks and insurance companies rose to 20 months, while the risk of corporate debt in the region fell.

The Markit iTraxx Financial index of credit-default swaps tied to the subordinated notes jumped 9.5 basis points to 320 basis points, while the Markit iTraxx Crossover index of 50 companies contracts mostly junk rating fell 6 basis points one-month low of 451, according to JPMorgan Chase & Co.

Swaps credit-default tend to fall as improving investor confidence and rising as it deteriorates. The contracts pay the buyer face value if a borrower defaults on its obligations, less the value of the defaulted debt. A basis point equals $ 1,000 annually on a contract protecting $ 10 million of debt.

Leveraged loans

The S & P / LSTA U.S. Leveraged Loan 100 Index rose for a second straight day, rising 0.1 cent to 91.96 cents. Prices in the index, which measures the 100 largest dollar loans first lien leveraged, have fallen 92.72 cents on Nov. 9, the highest since May 3.

In emerging markets, the extra yield investors demand to own corporate bonds rather than government bond rose 1 basis point to 227 basis points, according to JPMorgan Chase & Co. index data. The index ended Dec. 7 at 226 basis points narrower level since December 2007.

Spreads on bonds sold by U.S. banks have fallen 11 basis points this month, compared with 4 basis points to debt finance company in Europe, according to data from Bank of America Merrill Lynch index.

The issuance by European banks in the U.S. fell to 2.08 billion U.S. dollars last month, down 86 percent from 14.9 billion U.S. dollars sold in October and a drop of 88 percent of the 17.1 billion U.S. dollars issued in November 2009 . Including a sale of $ 1 billion of bonds backed by Amsterdam-based ING.

Covered bonds are typically backed by mortgages or public sector loans. The security underlying the debt remains with the issuer.

Sales in Europe

The companies have issued € 1,090,000,000 ($ 1,440,000,000) of debt in Europe since 06 December, following € 1,680,000,000 in the past week, at least excluding holiday periods since December 2000.

Société Générale sold $ 250 million in floating rate notes from three years that the performance of 132 basis points above the London interbank offered rate three months, $ 1 billion of debt maturity of 2.5 percent in January 2014, paying 158 basis points more than Treasuries of similar maturity and $ 750 million shares from 3.5 percent two years later due to 175 basis points.

In his last dollar reference offer, based in Paris SocGen issued $ 2 billion of debt on September 7, divided equally into two parts. The 2.2 percent notes due in September 2013 yielded 150 basis points more than Treasury securities and 3.1 percent due two years later became an extension of 170 basis points.

"The feeling of Judgement '

"There is a feeling of impending end of the world market when you have to pay more to get deals done," said Simon Ballard, a credit strategist based in London at RBC Capital Markets. "The whole market has been fairly well founded."

Obama said on Dec. 7 would agree to keep the tax cuts approved by George W. Bush for high-income taxpayers in exchange for extending federal unemployment insurance and cut the payroll tax by $ 120 million dollars a year. The current tax rates, enacted in 2001 and 2003, will increase to 31 December.

Kellogg's $ 1 billion 4 percent, to 10 years are a spread of 88 basis points. The income can be used to fund pension contributions and to pay commercial loans paper used in the repurchase of shares, the Battle Creek, Michigan, maker of Corn Flakes and Rice Krispies, said yesterday in a regulatory filing.

Seagate

Dublin-based Seagate, the world's largest maker of disk drives, sold $ 750 million eight-year senior notes in an attempt to refinance the debt after rejecting purchases of TPG Capital and competitor Western Digital Corp. The bonds are Moody's Ba1, one level below investment grade, and an equivalent BB + by S & P.

Irish Finance Minister Brian Lenihan won the support of legislators on 7 December in the first votes on the budget of 6 million euros to tackle the debt crisis of the country. The government is under pressure to pass legislation such as the tax burden threatens to prolong a fall that the economy has experienced 11 percent reduction in the last three years.

"The risk appetite of European funds and disappear on the basis of the owners," said John Hawley, who helps manage 22 billion U.S. dollars of investment grade credit as a money manager at Aviva Investors in Des Moines, Iowa "is an ongoing issue in terms of what the final solution is for Europe and everyone knows it will take a while for that to work."

Keep Racing UK rates home buyers in the market guessing

the UK home prices are rising. Or that is falling. Depends on whom you ask.

Property researcher Hometrack Ltd. reported a decrease of 0.9 percent per month in October, the highest since January 2009. Mortgage lender Halifax said prices rose 1.8 percent, recovering from a fall of 3.7 percent in September. Ltd. Acadametrics up from a gain of 0.3 percent, pushing prices to highest level since June 2008.

British decide whether to buy, sell or invest in residential property are left to sift through at least seven indexes that provide different results and regularly diverge in the direction of prices. Adding to the uncertainty in a market where confidence is already low and keeps some buyers and investors out, according to Christopher Down, executive director of Hearthstone Investments Plc.

"It was very difficult to define a benchmark residential property, because there are very different rates out there," said Down, who plans to raise up to 500 million pounds (788 million U.S. dollars) for a housing fund of the United Kingdom From the following year. "The appetite to invest in the sector is undeniable, especially in the small investor."

The seven indexes only agreed on the direction of the market in five of the 22 months through October. The last time was in January, when everything indicated a price increase.

Today's figures

Halifax said today that UK house prices fell 0.1 percent in November as demand weakened and the government prepared to implement the largest spending cuts since the Second World War to reduce a record budget deficit.

The indices that cover at least three months offer a more accurate picture of the market, according to Steve Morgan, president of builder Redrow Plc. Comparison of longer periods helps to "smooth the volatility experienced today," he said. Of the seven indices used, only those produced by Halifax and Nationwide provide quarterly data.

Redrow, based in St. David's Park, Wales, use their own data to see where prices go. This shows that the values have remained stable in the second half, "said Morgan.

UK Statistics Authority is reviewing the "consistency and comparability of the two levels of government and also assess public satisfaction with the statistics of the housing market in general, the agency said in August.

Government Review

"We are thinking of official measures and the extent to which it meets the needs of users," said Jason Bradbury, chairman of the steering committee of the review. "Where there are gaps, we will be looking to see what can be done to better meet that need." The results should be published within two months, he said.

Although the government will not be able to stop lenders and providers of data rates of the publication, which could lead to a greater emphasis on the figures of three months, "said Fionnuala Earley, economist at Royal Bank of Scotland Group Plc.

"There is confusion when the data are volatile, which can happen if there is a low number of transactions or the market is at a turning point, both of which could be applied now," he said.

Down hearthstone fund says will be in a format similar to followers share index, which track the broader market movement, so it has a wide coverage that is timely too.

"The best data set we found is Acadametrics." For our purposes, we have the most complete coverage possible, but we need to be timely, "he said. It seems they have managed to square the circle between opportunity and data. It is a very thorough index. "

Partial Coverage

Acadametrics is a research company that combines data from housing transactions of the Secretariat of the United Kingdom of land and other price measures to produce an estimate for the most recent month. The number is then revised in the following months as more complete data available. It does not cover Scotland, the hearthstone Down to include in your portfolio.

The final report Acadametrics based in London, 12 November, showed that house prices rose by 6.1 percent in October from a year earlier. That was the biggest increase is indicated by any of the seven indexes. At the other end of the scale, Hometrack reported a decrease of 0.1 percent.

In the U.S., the S & P / Case-Shiller index is considered the country's standard gauge of housing prices. It is based on the average price of transactions across 20 metropolitan areas and published with a lag of two months. In Spain, buyers and sellers are primarily based on government data and Idealista.com, the country's largest property website.

Less Properties

About 600,000 homes changed hands in the UK in 2009, half the 2006 level, according to the Land Registry. About 69 percent of people in Britain own their homes.

The government's Land Registry is the only source for the actual price paid for residential property transactions in England and Wales, including those made by cash. The indices of nationwide lenders and Halifax mortgage based on that offer. Rightmove Plc, which operates the UK's largest website for residential property, offering starting prices of a sample of properties offered on the site. Some measures are based on data from England and Wales, while others search throughout the United Kingdom

The various measures also produce contrasts average house prices across the country. In November, Hometrack estimated price was about 155,000 pounds, while the Rightmove asking price was about 230,000 pounds.

Frustrated Homebuilders

Data from the Communities and Local Government department includes mortgages Council of Mortgage Lenders and excludes cash buyers, who represent 25 percent of all transactions. Data from the Land Registry is composed of properties sold at least twice since it began in 1995, with the exception of about two-thirds of floors and all new homes.

home builders in the UK say they feel frustrated with the range and volatility of the indices used because of their actions often move in the direction of an index on the day in a statement. When Halifax said house prices fell 3.7 percent in September, EMEA index fell 2.3 percent, the most in a month.

"You can almost read the data and tell any story you like," Taylor Wimpey Plc said CEO Pete Redfern, in an interview. "They all see things differently, which may lead to a rather distorted."

House price indices are a poor measure to use when investing in construction companies because it does not take into account changes in land values, which are more relevant to future earnings, said Gary Channon, Head of Phoenix Investment Partners Asset Management.

"So much noise"

"The large number of indices of housing prices in the UK creates so much noise that the real image rarely arises," Channon said in an interview. "Unfortunately, they are produced by organizations release them with the business." Phoenix has a 5 per cent of Barratt Developments Plc, the largest homebuilder in the country by volume.

Halifax offers the longest uninterrupted monthly data set of any index of UK house and usually leads rival National reporting points of inflection in the market, according to Jessica Lord, a spokeswoman for parent company Lloyds Banking Group Plc. Both are based on assessments by its own inspectors.

"The mixed pattern of monthly rise and fall so far this year is consistent with a slowdown, but not necessarily the fall, the market," he said in an e-mail.

Rightmove lists over 90 percent of homes for sale in the UK and takes the average of all listings excluding outliers, according to spokesman Matt James.

"Therefore, we are well placed to give a good early indicator of the direction the market could take," he said.

Strategic Pricing

While Rightmove is very timely, "there is often a lot of strategy in selling prices," said Earley of RBS. "Retailers do not expect to get that price."

Halifax and Nationwide data are now based on less than they were three years ago because they are offering fewer mortgages, Down said. That makes the results more volatile. Approximately 144 million pounds of mortgages were issued last year, compared with 363 million pounds in 2007, according to the Council of Mortgage Lenders.

The Land Registry does not distinguish between types of properties or the number of rooms in the houses they have, while lenders the weight of their rates according to type of property to avoid a type of house that dominates a particular month.

"There is a huge amount of data, and put everything online could be problematic, but it will eventually happen," said David Thorpe, the founder of Acadametrics, in an interview. "The government review is necessary because we have a series of indices delivered to a public that is confused. Without a huge increase in data quality is a problem without solution."

Bond sales increased demand as yields in Stoke 6 months ago

Russia sold more bonds offered for the first time, accepting the highest performance in six months as the prospect of higher interest rates increases the cost of financing its budget deficit.

The Ministry of Finance sold 6.5 billion rubles ($ 209 million) of bonds maturing in August 2012 Yesterday, more than 5.9 billion rubles planned for a yield of 6.1 percent, the highest highest since June 2, according to data compiled by Bloomberg. The government also issued 10.4 billion rubles of OFZs per call in July 2015 with a yield of 7.26 percent, the highest end of the guidance given on 7 December.

Inflation that the government expects to exceed its target of 8 percent this year is beginning to "worry" Central Bank Chairman Sergei Ignatiev rossii Bank said yesterday. Traders expect the benchmark rates at historic low-rise in more than half a percentage point from a low of 2.5 percent over the next three months, according to futures contracts on the rate, after 14 cuts from April , 2009 and May this year.

"With the monetary tightening on the horizon in the first quarter and higher inflation have to offer a higher premium," said Dmitry Gourov, emerging markets strategist at UniCredit SpA, by telephone from Vienna yesterday. "OFZs will become a best buy in the coming year when rates go higher."

Brazil offered investors a yield of 12.208 percent of its domestic bonds due in January 2015 last week, two basic points of the highest rate since the securities were sold for the first time in September, according to data compiled by Bloomberg. The yields of the real South American country, due in January 2014, the yield 12.385 percent, up from 11,373 percent when last offered in August, according to the data.

Brazil Rates

Traders in the futures market are betting interest rates in Brazil will increase its benchmark rate by at least 25 basis points, or 0.25 percentage point to 11 percent in January, according to Bloomberg data. The central bank kept the benchmark rate at 10.75 percent yesterday. Consumer prices rose 5.63 percent in November from a year earlier, the highest since February 2009. The central bank targets annual inflation of 4.5 percent, plus or minus 2 percentage points.

Russia has sold 558 billion rubles of OFZs this year, or 67 percent of 839 billion rubles for 2010, based on central bank data.

"The Ministry of Finance has a large stock of debt has not yet and that is why it sold more of this week," said Konstantin Kostrub, chief fixed-income trading at ING Groep NV, phone from Moscow yesterday. The auction was the first time the government sold more debt than expected, he said.

Spending Reserves

The government has used its reserve fund, one of two sovereign wealth funds to finance the country's budget deficit in 1999 seconds. The fund fell 33 percent this year to 40.9 billion U.S. dollars. The government plans to spend $ 20 million fund in December and $ 10 million next year, Deputy Finance Minister Dmitry Pankin said at a conference in London on 30 November.

"Ideally the government should not use the Reserve Fund," said Kostrub. "It's in the interest of the Ministry of Finance to bring these levels," he said, referring to increased sales OFZs yesterday.

The ruble was little changed at 31.0449 per dollar 13:03 in Moscow today, after rising to the highest level since 19 November. non-deliverable, or opinions that provide guidance to the expectations of currency movements and interest rate differentials and allow companies to hedge against currency movements, show the ruble at 31.3078 per dollar in three months.

Extra Performance

Russian bonds in 2020 the dollar rose during the first day this week, pushing the yield 11 basis points below 4.82 percent. The ticket prices in rubles by August 2016 the country also won, leaving production unchanged at 7.31 percent.

The extra yield investors demand to hold the Russian debt rather than U.S. Treasuries fell 3 basis points to 196, according to JPMorgan EMBI + index. The spread of so-called compared with 128 for Mexico's debt with similar qualifications and 166 for Brazil, which is rated two steps below Baa3 by Moody's.

The spread of Russian bonds is 32 basis points below the average for emerging markets, down from a maximum of 15 months from 105 in February, according to JPMorgan indexes.

The cost of protecting Russian debt against default by five years using credit-default swaps fell 1 basis point to 143 points today, down from the peak this year of 217, according to data provider CMA. The contracts pay the buyer face value in exchange for the underlying securities or the cash equivalent of a government or a company fail to adhere to its debt agreements.

Overnight Rates

Swaps credit-default for Russia, rated Baa1 by Moody's Investors Service, the third lowest investment grade rating, cost 17 basis points more than the contracts in Turkey, classified as four levels lower than Ba2. Russia swaps cost as much as 40 basis points less on 20 April.

Overnight rates on ruble interbank deposits rose 5 percent to 30 November, the highest since Jan. 25. MosPrime, the average rate Russian banks charge to lend money to each other overnight, hit a 11-month high of 4.78 percent last week. Ruoni, the average rate banks charge 31 to pay rubles each other, reached 4.43 percent, the highest since March 30.

The Ministry of Finance said that November 23 was delayed a December 01 auction to sell 15.2 billion rubles of bonds in November 2014 and 10.5 billion rubles in June 2011 to December 22, the values of debt crisis in Europe and the depreciation of the ruble prompted investors to flee in local currency debt. The government sold 29.4 billion rubles, or 83 percent of the 35.5 billion rubles of bonds offered at auction Nov. 24.

Russia every year inflation rate rose for the fourth month in November to 8.1 percent, the highest since December 2009. Central Bank of Russia has a "free hand" to start raising borrowing costs, the Bank first vice president Alexei Ulyukayev rossii told a conference in Munich on 29 November.

India's inflation remains above "tolerance", central bank governor Duvvuri Subbarao said before the monetary policy announcement next week.

"Inflation is falling but still above RBI's tolerance level," Subbarao told reporters in the eastern city of Calcutta, India yesterday. Inflation India's benchmark wholesale prices cooled to a nine-month low of 8.58 percent in October. The Reserve Bank of India aims to curb inflation to between 4 percent and 4.5 percent.

The central bank said on 02 November that it probably will not raise interest rates until January, taking time to see the impact of six increases in interest rates this year. A liquidity crisis in banks after companies like Coal India Ltd. raised funds selling shares can also Subbarao system to keep borrowing costs unchanged for the time, said Shubhada Rao, chief economist at Yes Bank Ltd . in Mumbai.

"The message is that the RBI remains vigilant on inflation," said Rao. "The RBI will keep rates at its meeting on 16 December, and he expects to see the impact of previous rate hikes on inflation."

Yields Drop

The yield on the 10-year bond fell three basis points to 7.8 percent at 2:03 pm in Mumbai after Subbarao today said the central bank was "fully aware" of the liquidity situation in banks.

Commercial banks borrowed an average of 800.7 billion rupees ($ 17,700,000,000) this quarter using the window of the RBI's repurchase auction, compared with 239 million rupees in the last three months .
"We are studying the issue and we will take steps that are necessary, but I can not say what and when," Subbarao told reporters in Calcutta after a meeting of central bank board. "We expected the government's cash balances would collapse and easing the liquidity situation. As much as the government has begun to happen, that has not been on a scale large enough to ease the liquidity situation."

The central bank said on December 6 today it will buy back bonds due in 2016, 2017, 2020 and 2022 to pump money into the banking system.

The rupee weakened 0.2 percent to 45.16 against the dollar, while the Bombay Stock Exchange sensitive index decreased 1.9 percent, at 19,316.31.

Policy Guidance

The deputy Subir Gokarn told reporters in Calcutta that the central bank is signaling a change in the orientation of monetary policy due to the liquidity crisis. He said rising global commodity prices may complicate the management of inflation.

Food inflation in India has accelerated to 8.69 percent in the week ended Nov. 27 about a 1/2-year minimum of 8.6 percent in the previous week, the Ministry of Commerce, said in a announced today in New Delhi.

The Reserve Bank on November 2 increased the repurchase rate by a quarter percentage point to 6.25 percent and the reverse repurchase rate by the same margin to 5.25 percent. Inflation is forecast to slow to 5.5 percent on March 31.

Gold may drop further as record high investor demand Stokes

Gold may climb in London as a two-day slide from a record increase in demand for physical traders and investors.

Gold fell 2.9 percent the past two days after reaching a record $ 1431.25 an ounce on 07 December. The dollar was little changed against the euro before reports today that economists said will show U.S. initial jobless claims fell and improving consumer confidence. Gold typically moves inversely to the dollar.

"We're seeing a lot of physical demand out of Asia," said Bernard Sin, chief currency and bullion trading metal refinery MKS Finance SA in Geneva. "People are happy to buy here. There is still much concern in the euro area and the U.S."

immediately bullion delivery added $ 7.05, or 0.5 percent, to $ 1,389.13 an ounce at 9:20 am in London. The metal for delivery in February was 0.5 percent, to $ 1,389.70 in the Comex in New York.

Gold has risen 27 percent this year, heading for 10 consecutive annual gain, after the government spent billions of dollars and keep borrowing costs low to boost the economies affected by the worst global recession since World War II. Europe's debt problems and investor demand for an alternative to coins has supported precious metals.

Responsible for Federal Reserve policymakers meet Dec. 14 to discuss a potential plan to increase purchases of Treasury to support the economy. U.S. President Barack Obama this week agreed to extend the tax cuts to boost growth, a measure that can expand the budget deficit of $ 1.3 billion.

Assets Fall

"There is still some demand to buy on dips after a fall in the last couple of days," said Lee Joon, a senior trader at Woori Futures Co. in Seoul. "We can hardly say the gold rally is over. The factors that have pushed up gold prices as an asset for wealth protection and an alternative to a weaker dollar are still there."

gold assets in exchange-traded products fell 3.38 to 2,097.98 tons metric tons yesterday. Holdings reached a record 2,104.65 tonnes on 14 October.

Silver for immediate delivery in London rose 1 percent to $ 28.6775 an ounce, after reaching $ 30.7025 on December 7, the highest since March 1980. The metal is 70 percent this year and reached a record high of $ 50.35 in New York in 1980, a year after the Hunt brothers tried to corner the market.

Palladium gained 1.9 percent to $ 740.25 an ounce. It rose to $ 779.10 on 3 December, the highest since April 2001. Platinum was 0.2 percent, to $ 1,689.55 an ounce.

ETP holdings Platinum jumped 0.94 to 35.76 tonnes tonne yesterday, the highest amount since at least February, according to data compiled from three vendors show. active palladium gained 1.94 tonnes to 67.44 tonnes, also the highest amount since at least February.

The euro weakened against the dollar and the yen.

The 16-nation currency slid 0.3 percent to $ 1.3218 as of 9:52 am in London, after having strengthened to $ 1.3323. The euro fell 0.4 percent against the yen at 110.98.

Treasuries gained as benchmark yields about six months investors attracted high amid speculation that the Federal Reserve next week's sign that he is considering adding to its program of 600 billion U.S. dollars of LBO .

Ten years following notes rose the highest two-day plunge in two years, the extra yield offered by Treasury bills to 10-year Japanese government bonds widened to more than five months, increasing the attractiveness of U.S. assets . Fed officials will meet on Dec. 14 after announcing its purchase program of the Treasury at its last meeting on 3 November. Thirty-year bonds were little changed before the Treasury auctions $ 13 billion in present value, to complete the week of 66 billion U.S. dollars of the note and bond sales.

"Bonds are finding some support after sharp selloff," said Kornelius Purps, fixed income strategist at UniCredit SpA in Munich. "There are some expectations that the Fed could expand its quantitative easing program, in the meeting next week. The auction of 30 years is a risk, but could be a supporting factor later, as yields at around 4 , 5 percent may represent a buying opportunity. "

The yield on the benchmark 10-year bond fell four basis points to 3.24 percent as of 9:39 am in London. The guarantee of 2,625 percent due November 2020 rose 10/32, or $ 3.13 per $ 1,000 face amount, to 94 27/32. The yield rose to 3.33 percent yesterday, the highest level since June 4.

The 30-year yield was little changed at 4.45 percent, after rising 4.50 percent yesterday, the highest since May 13.

ten-year yields rose 35 basis points in the last two days, the biggest such increase since September 2008, when financial markets were roiled by the bankruptcy of Lehman Brothers Holdings Inc.

"It's certainly possible"

Buy more U.S. government bonds which has already announced it is "certainly possible", said the Fed chairman, Ben S. Bernanke, in an interview broadcast on December 05, s of CBS Corp. "60 Minutes" program. "It depends on the effectiveness of the program" and the outlook for inflation and the economy, Bernanke said.

Some economists said that Fed officials may signal the intention to halt any rapid increase in yields. The Central Bank purchases of debt is intended to reduce interest rates in the long term, making it cheaper for companies to purchase new equipment and for consumers to buy houses and cars.

"Financial markets, in particular, long-term yields have risen this far, so the Fed could discuss ways of communication that calm," said Hiroki Shimazu, an economist in Tokyo at Nikko Cordial Securities Inc. , a unit of Sumitomo Mitsui Financial Group Inc., Japan's third-largest bank by assets traded. "You could put the communication in the declaration must yield increases to become too one-sided."

Extra Performance

The extra yield, or spread, offered by Treasury bills to 10-year maturity bonds similar to Japan rose to 2.04 percentage points yesterday, the widest since June 15. 10-year yields in Japan rose to 1.27 percent today, the most since June 4. The spread was 2 percentage points today.

"Yields well above the 3 percent is likely to be very attractive to Japanese investors," said Satoshi Okumoto, who helps manage the equivalent of $ 68 million as CEO of fukoku Mutual Life Insurance Co. in Tokyo . "We see buying them."

Treasury bonds have handed investors a return of 5.8 percent this year, according to Bank of America Merrill Lynch data. Japanese debt increased by 1.3 percent, the indexes show.

The gain in Treasuries was diluted to a U.S. report said today that economists are jobless claims fell.

"Massive Sales"

Jobless claims likely declined by 11,000 to 425,000 in the week ended Dec. 4. The index of Thomson Reuters / University of Michigan preliminary consumer sentiment rose to 72.5 in December from 71.6 the previous month, a separate survey showed before the figures are published tomorrow.

"The good economic news may keep Treasuries around these levels or push northward, but the settlement is likely to run out of steam not far from here," said Roger Bridges, who oversees the equivalent of $ 15.7 thousand million in Sydney as head of fixed-income at Tyndall Investment Management Ltd., part of Australia's largest insurer.

The 30-year bonds sold today yielded 4.44 percent in pre-auction, compared with 4.32 percent in vehicle sales and 10 November. Investors bid for 2.31 times the amount offered last month, compared with 2.49 times on 14 October.

'Dicey' auction

"An auction of 30 years after a sell-off may be a bit risky," said Bridges.

In the 10-year auction yesterday, the title has a yield of 3.34 percent, compared with the average forecast of 3,307 percent in a survey of primary dealers, firms required to participate in sales government debt.

Prospective ten-year Treasury note may fall below 119 after breaking below 121 14/32-121 16/32, a key support area, Societe Generale SA, said, citing technical indicators.

The straw that "began in 128 1 / 32 in early November is probably stronger than we thought initially," Societe Generale analyst Hugues Naka and Manac'h technical Fabien in Paris, wrote in a research note today day.

The Department's 10-year Treasury futures contract due in March 2011 was little changed at 120 24/32. It was 120 4 / 32 yesterday, the lowest since June 22.

The difference between yields on U.S. 10 years and Treasury inflation-protected securities, an indicator of expectations operator in consumer prices during the life of the securities is known as the breakeven rate, little changed today at 2.21 percentage points after increase to 2.29 percentage points yesterday, the widest since May 13.

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Welcome to our website

Thursday, December 9, 2010

The Pound Gains Versus Euro Before Bank of England Rate Decision

The dollar strengthened for a fourth day

SPDR Gold Trust Options Ponga Beat Calls for the first time in two weeks

European shares rose to a maximum of two years

The Dollar May Rise to 88 Yen

Hedge Funds Return 0.6% in November, Beating Japan stocks as lead managers

Follow winding Gabrielli Petrobras $ 40 million of debt plan

Brazil leaves options open for the truth Tombini time increase in its rate

Fluctuations in currency exchange rates will increase next year growth rates differ

Australia Dollar rises as employers add more jobs than economists forecast

Wheat quality up by March as Australia Drops

Top Asia shares in employment growth in Australia, Japan's GDP

Nikkei 225 "Signs of the Cross of Gold 'Rally April high

Woodside signs $ 1.1 billion syndicated loan for five years as LNG Up Costs

Oil Trader JPMorgan Eisenstein leaves in restructuring after Sempra Buy

Norway Oil Fund Says Europe Bet Pays Off on Strong Bond Outlook

Oil rose for the first time in three days

SocGen , HSBC U.S. Touch Sales to Europe Funds Evaporate

Keep Racing UK rates home buyers in the market guessing

Bond sales increased demand as yields in Stoke 6 months ago

India inflation above the level of tolerance " Subbarao said before the meeting Rates

Gold may drop further as record high investor demand Stokes

The euro weakened against the dollar and the yen.

Treasury yields rise as high decoy About 6 months Fed Outlook

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