Managed FundsStay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.., 29 Aug 2015 07:10:50 +0000SRA Framework 2.0en-gbMauritius 182-day Treasury bills yield rises to 1.80pc

imagePORT LOUIS: The weighted average yield on Mauritius' 182-day Treasury bill rose to 1.80 percent at an auction on Friday from 1.54 percent at the previous sale on Aug. 7, the central bank said.

The Bank of Mauritius said it sold all the 600 million Mauritius rupees ($17.12 million) worth of securities it had offered. It said it had received bids worth 1.655 billion rupees at yields ranging from 1.59 percent to 2.50 percent.

Copyright Reuters, 2015

]]> (Shoaib-ur-Rehman Siddiqui)Managed FundsFri, 28 Aug 2015 12:15:10 +0000
Mauritius 364-day Treasury bills yield rises to 2.35pc

imagePORT LOUIS: The weighted average yield on Mauritius' 364-day Treasury bill rose to 2.35 percent at auction on Wednesday from 2.18 percent at a previous sale on Aug. 14, the central bank said.

The bank sold all the 1.5 billion rupees ($43.10 million)worth of debt it had offered. It received bids worth 2.08 billion rupees, at rates between 2.22 percent to 3.50 percent.

Copyright Reuters, 2015

]]> (Shoaib-ur-Rehman Siddiqui)Managed FundsWed, 26 Aug 2015 12:25:47 +0000
Yields fall as Fed rate hike in September seen less likely YORK: US Treasury yields fell Thursday after minutes from the Federal Reserve's most recent meeting offered no firm indication of how soon the Fed may raise interest rates and reducing expectations of a rate hike next month.

US central bank officials widely agreed last month the economy was nearing the point where rates should move higher, but worried lagging inflation and a weak global economy posed too big a risk to commit to "liftoff."

"The thought is that the Fed is not going to move in the September meeting. They really did not put forth an exact timeline and people had really felt that the Fed was going to telegraph the rate hike," said Mary Ann Hurley, vice president in fixed income trading at D.A. Davidson in Seattle.

Benchmark 10-year notes were last up 11/32 in price to yield 2.09 percent. The yields have fallen from 2.50 percent in mid-June.

Short-term US interest rates in the over-the-counter market on Thursday hinted traders saw a one-in-three chance the Fed would raise interest rates in September. A week ago, they implied a 48 percent chance of a September rate hike.

Concerns about low inflation have increased as oil prices plunge to 6-1/2 year lows. US crude oil prices fell to almost $40 a barrel Thursday, their lowest since 2009, before turning higher on news of the first hurricane of the 2015 Atlantic season.

Inflation concerns, however, did not dent demand for new Treasury Inflation-Protected Securities (TIPS) on Thursday.

The US Treasury Department sold $16 billion of five-year TIPS to record investor demand as the sector's recent rout enticed bargain-minded participants to the auction.

Data also reflected a still strengthening US economy.

US home resales rose to a near 8-1/2-year high in July and factory activity in the mid-Atlantic region picked up this month, fresh signs of steady economic growth that likely keeps the Federal Reserve on track to raise interest rates this year.

The Treasury will sell $90 billion in new coupon-bearing debt next week, including $26 billion in two-year notes, $35 billion in five-year notes and $29 billion in seven-year notes.

Copyright Reuters, 2015

]]> (Imaduddin)Managed FundsThu, 20 Aug 2015 22:01:48 +0000
Portugal sells more T-bills than planned, 3-month yield record low Portugal sold more than planned in a Treasury bill auction on Wednesday, with three-month borrowing costs falling to negative record lows and 11-month yields down sharply as concerns over Greece diminished after creditors approved its new bailout.

The IGCP debt agency sold 1.15 billion euros ($1.27 billion) total in three- and 11-month T-bills, above its indicated offer range of up to 1 billion euros.

The average yield on 11-month bills fell to 0.021 percent at the auction from 0.159 percent in the previous auction of the same maturity in June, and was close to the record low of 0.015 obtained in April.

The IGCP sold 750 million euros of 11-month bills and 400 million euros of the shorter issue.

The average yield on three-month bills fell to -0.013 percent from 0.044 percent in June. Demand for 11-month bills outstripped the amount placed by 2 times, and by 3.1 times for the shorter maturity.

Copyright Reuters, 2015

]]> (Shoaib-ur-Rehman Siddiqui)Managed FundsWed, 19 Aug 2015 14:06:27 +0000
Prices gain after weak NY manufacturing data YORK: US Treasury prices gained on Monday after data showing manufacturing activity in New York state plunged to its weakest level in August since 2009, raising concerns the weakness may weigh on broader US economic growth indicators.

The New York Fed's Empire State general business conditions index tumbled from 3.86 in July to -14.92 in August, its lowest since April 2009, due to steep drops in new orders and shipments.

Economists polled by Reuters had expected the index to rise to 5.00 this month. A reading above zero indicates expansion.

"Some people are talking about it in regards to what this means for the broader manufacturing indexes at the beginning of next month," said Thomas Simons, a money market economist at Jefferies in New York.

Benchmark 10-year notes were last up 13/32 in price to yield 2.15 percent, down from 2.18 percent before the data.

Slowing growth could complicate the Federal Reserve's ability to raise interest rates, which many economists and investors see as most likely to begin at the US central bank's September meeting.

Low inflation, which has worsened in recent weeks as oil prices continue to decline, is also problematic for the Fed.

US crude, or West Texas Intermediate (WTI), for September was trading 65 cents lower at $41.85 a barrel at 1155 GMT, close to its lowest level in more than six years.

The next major focus for investors will be consumer price data for July, which is due on Wednesday morning. The Fed will also release minutes from its July meeting on Wednesday afternoon.

Investors will evaluate the Fed minutes for any new signs that Fed members were concerned about low inflation, even before the more recent decline.

They will also look for new information on how the Fed sees global risks to the economy, though the minutes won't capture last week's surprise devaluation of the Chinese yuan.

"The China devaluation story has only developed in the last week or so, and things in general were different when the meeting was going on," said Simons. "There was an acknowledgement in the FOMC statement about some of the global risks and people are going to be looking for further discussion on that."

Copyright Reuters, 2015

]]> (Imaduddin)Managed FundsMon, 17 Aug 2015 17:59:21 +0000
Benchmark yields hit two-month low on weak US data YORK: US long-dated and benchmark Treasuries yields hit their lowest levels in two months on Monday after weaker-than-expected US economic data damped expectations that the Federal Reserve will hike interest rates in September.

The Institute for Supply Management (ISM) said its index of national factory activity fell to 52.7 in July from 53.5 the month before. The reading was shy of expectations that the pace would remain unchanged at 53.5, according to a Reuters poll of economists.

In addition, the employment index slipped to 52.7 from 55.5, also short of expectations for a reading of 54.7.

The Fed is closely monitoring the US labor market for guidance on when to start hiking rates.

"The market now is taking score of every single data print between now and September, and if the balance continues to shift more toward weaker data than stronger data, it may make September a coin flip," said George Goncalves, head of US rates strategy at Nomura Securities International in New York.

The US economy and job market continue to strengthen, the Fed said last week, leaving the door open for a possible interest rate hike when central bank policymakers next meet in September.

Rate hikes are expected to hurt bond prices, which move inversely to yields.

US 30-year yields and benchmark 10-year yields hit their lowest levels since June 1 of 2.8867 percent and 2.1676 percent, respectively.

Short-dated Treasuries yields also dipped slightly, with three-year yields hitting their lowest since July 9 at 0.9639 percent.

The move lower in short-dated yields was slight, however, which analysts attributed to traders' unwillingness to make major bets ahead of Friday's US July non-farm payrolls data. Economists expect US employers to have added 223,000 jobs last month, according to a Reuters poll.

"People will be reluctant to buy (short-dated notes) ahead of the payroll report," said David Keeble, global head of interest rates strategy at Credit Agricole in New York.

Benchmark 10-year Treasury notes were last up 9/32 in price to yield 2.17 percent, from a yield of 2.21 percent late Friday.

US 30-year bonds were last up 24/32 in price to yield 2.89 percent, from a yield of 2.93 percent late Friday.

US three-year notes were last up 2/32 in price to yield 0.97 percent, from a yield of 0.99 percent late Friday.

On Wall Street, the benchmark S&P 500 stock index was last down 0.27 percent.

Copyright Reuters, 2015

]]> (Shoaib-ur-Rehman Siddiqui)Managed FundsMon, 03 Aug 2015 18:40:02 +0000
China finance ministry to auction 22bn yuan of 1-year bills on Aug 7 China's Ministry of Finance said on Friday that it will auction 22 billion yuan ($3.54 billion) in one-year government bills on Aug. 7.

After the auction, the bonds will be issued from Aug. 7-12 and begin secondary market trading on Aug. 14, it said in a statement published on the website of China's main bond clearing house.

Copyright Reuters, 2015

]]> (Shoaib-ur-Rehman Siddiqui)Managed FundsFri, 31 Jul 2015 13:12:11 +0000
Greece to auction T-bills on August 5

imageATHENS: Greece will sell 625 million euros ($684.44 million) of six-month Treasury bills on August 5 to refinance a maturing issue, its debt agency said on Friday.

Cash-strapped Greece sold 813 million euros of three-month T-bills earlier this month to refinance a maturing issue, managing to keep its public finances afloat amid a bank shutdown.

The settlement date of the new T-bills will be August 7. Only primary dealers will be allowed to participate and no commission is to be paid.

Copyright Reuters, 2015

]]> (Shoaib-ur-Rehman Siddiqui)Managed FundsFri, 31 Jul 2015 13:09:40 +0000
German yields rise as stocks recover, Fed watched German bond yields edged up on Tuesday as equity markets steadied and risk appetite recovered, but strategists said further rises were likely to be capped by cheapening oil prices and a US policy meeting.

The euro zone's benchmark moved away from three-week lows hit on Monday when a slump in Chinese stocks saw investors rush for cover in top-rated assets, as global stock markets staged a modest recovery.

Investors were encouraged by Chinese equity prices' closing off day's lows, even though they ended with a loss on the day.

Receding fears around Greece have seen safe-haven bonds lose their appeal.

Investor expectations of a euro zone break up fell to 26.5 percent in July, its lowest level in six months, Germany's Sentix research group said on Tuesday.

But with oil prices hovering near six-month lows on supply worries -- feeding deflationary fears -- and the US Federal Reserve expected to remain guarded on any plans to raise rates after a two-day meeting concludes on Wednesday, strategists were cautious about predicting any sustained market direction.

"Asian equities have done a bit better than yesterday so there is not an outspoken risk-off sentiment at this stage," said KBC strategist Piet Lammens.

"But the oil price might provide some support for the Bund while we don't see any reason for the Fed to come up with a more precise data for lift-off with a question mark still very much hanging over China."

A series of bearish projections on US economic growth and inflation which were inadvertently disclosed on the Federal Reserve's website on Friday has added to speculation that US policymakers may hold off signalling a rate hike for September.

German 10-year yields rose 1.5 basis points on Tuesday to 0.65 percent, having hit a three-week low of 0.62 percent on Monday. Lower-rated yields in the bloc's southern periphery fared better, with yields on Italian equivalents down 2 bps at 1.88 percent and Spanish equivalents lower by about a similar amount at 1.92 percent.

Peripheral euro zone bond yields are also subdued as the slump in global commodities prices pushed back expectations when the European Central Bank will start normalising its ultra-loose monetary policy.

A below-estimate rise in single family US home sales in May and a drop in a measure of US consumer confidence for July had littile impact on the overall direction of the market.

DZ Bank said markets were currently pricing in a 35 percent chance of the Fed raising rates in September, but expects this to "decline noticeably" after Wednesday's statement with the Fed unlikely to make any specific reference to a near-term hike.

Copyright Reuters, 2015

]]> (Shoaib-ur-Rehman Siddiqui)Managed FundsTue, 28 Jul 2015 19:27:49 +0000
Kenyan T-bill yields to track overnight rates higher The yields on Kenya's Treasury bills are expected to rise further, pushed by rising overnight interbank lending rates and the central bank's term auction deposits.

The central bank has capped the weighted average yield on its 14-day, 21-day and 28-day term auction deposits - used to manage liquidity in the money markets - at 14 percent.

Due to tight shilling liquidity, the average interbank lending rate shot up to 16.3769 percent on Thursday from 12.7576 percent last Thursday.

"I think the rates are going to continue going up for a while. If you look at where the term auction deposits rate is at, and overnight is, the rates are bound to go up," a fixed income trader at one securities brokerage company said. Next week the central bank will auction 91-day, 182-day and 364-day Treasury bills worth a total 11 billion shillings ($109 million).

At this week's sale, the weighted average yield on the 182-day Treasury bill rose to 12.431 percent from 12.153 percent last week, while that on the 364-day bill jumped to 13.034 percent from 12.532 percent last week. The yield on the 91-day bill rose to 11.486 percent from 11.327 percent last week.

Copyright Reuters, 2015

]]> (Shoaib-ur-Rehman Siddiqui)Managed FundsFri, 24 Jul 2015 13:01:25 +0000