Fixed IncomeStay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. latest bonds news | latest debts news | top world debts newshttp://www.brecorder.com/markets/fixed-income.htmlFri, 04 Sep 2015 10:09:42 +0000SRA Framework 2.0en-gbPrices edge higher on dovish ECB, US jobs data eyedhttp://www.brecorder.com/markets/fixed-income/americas/253389-prices-edge-higher-on-dovish-ecb-us-jobs-data-eyed.htmlhttp://www.brecorder.com/markets/fixed-income/americas/253389-prices-edge-higher-on-dovish-ecb-us-jobs-data-eyed.htmlimageNEW YORK: US Treasuries prices rose on Thursday after a dovish outlook from the European Central Bank made US government debt more attractive than European counterparts but caution ahead of Friday's monthly US employment report limited gains.

The European Central Bank cut its inflation and growth forecasts for the euro zone and its president, Mario Draghi, said things could get worse.

The bank pledged to beef up or prolong its bond-buying program if the picture darkened further, although no one on the bank's Governing Council had argued for it now.

US Treasury yields followed German Bund yields lower. Benchmark 10-year Bund yields hit a session low of 0.73 percent, from 0.80 percent late Wednesday, while 10-year US yields hit a session low of 2.15 percent after yielding 2.19 percent late Wednesday. Yields move inversely to prices.

"Draghi was dovish," said David Ader, fixed income strategist at CRT Capital in Stamford, Connecticut.

Accommodative ECB monetary policy keeps European bond yields low and fuels demand for US Treasuries, which offer higher yields.

Hesitation ahead of Friday's US non-farm payrolls report for August capped gains in Treasuries prices.

Economists expect that US employers added 220,000 jobs in August, up from 215,000 in July, according to a Reuters poll.

Analysts said the report would be crucial to the Federal Reserve's decision on whether to raise interest rates at the US central bank's policy meeting later this month.

"Activity is going to be a little restrained by the employment report tomorrow," said Kim Rupert, director of fixed income at Action Economics in San Francisco, in reference to Thursday's muted price activity in the US Treasury market.

Benchmark 10-year Treasury notes were last up 5/32 in price to yield 2.17 percent.

US 30-year Treasuries were last up 9/32 in price to yield 2.95 percent after hitting a more than one-month high of 2.97 percent late Wednesday.

Two-year notes were last up 1/32 in price to yield 0.70 percent, from a yield of 0.72 percent late Wednesday.

Demand for safe-haven US Treasuries came even as riskier US stocks advanced after the ECB's statements and US economic data showing a strengthening economy.

The benchmark S&P 500 stock index was up 0.72 percent.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)AmericasThu, 03 Sep 2015 14:44:35 +0000
Nigeria raises 172.8 bln naira in T-bills, yields mixed http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/253349-nigeria-raises-1728-bln-naira-in-t-bills-yields-mixed.htmlhttp://www.brecorder.com/markets/fixed-income/middle-east-a-africa/253349-nigeria-raises-1728-bln-naira-in-t-bills-yields-mixed.html

imageLAGOS: Nigeria raised 172.85 billion naira in Treasury bills with maturities of 3 months to one year at mixed returns with strong local investor demand for the note at Wednesday's auction, results released by the central bank showed on Thursday.

Total bids for the debts stood at 283.58 billion naira compared with 63.55 billion naira at the previous auction on Aug. 19, boosted by increased naira liquidity in the money market from budgetary allocations for the month of July.

The bank sold 17.85 billion naira of the 3-month debt at 10 percent, unchanged from the Aug. 19 auction.

It auctioned 50 billion naira of six-month bills at 13.50 percent, up from 13 percent previously, while selling 105 billion naira of the 1-year debt at 14.69 percent against 14.71 percent at the Aug. 5 auction when one year paper was last issued.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)Middle East & AfricaThu, 03 Sep 2015 12:00:55 +0000
Greece rolls over 6-month T-bills, yield steady http://www.brecorder.com/markets/fixed-income/europe/253226-greece-rolls-over-6-month-t-bills-yield-steady.htmlhttp://www.brecorder.com/markets/fixed-income/europe/253226-greece-rolls-over-6-month-t-bills-yield-steady.htmlimageATHENS: Greece sold 1.138 billion euros ($1.28 billion) of six-month T-bills on Wednesday to refinance a maturing issue, keeping its public finances afloat as it heads for elections on Sept. 20.

With 1.4 billion euros of six-month paper maturing on Sept. 4, debt agency PDMA sold the new paper at a yield of 2.97 percent, unchanged from a previous sale last month.

In the rollover, T-bill holders - mostly banks - renew their positions instead of getting paid on the maturing paper they hold.

The sale's bid-cover ratio was 1.30, unchanged from the last sale.

The amount raised included 262.5 million euros in non-competitive bids. Settlement will be on Sept 4.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeWed, 02 Sep 2015 12:27:24 +0000
German bond yields fall as ECB policy decision, US data eyedhttp://www.brecorder.com/markets/fixed-income/europe/253213-german-bond-yields-fall-as-ecb-policy-decision-us-data-eyed.htmlhttp://www.brecorder.com/markets/fixed-income/europe/253213-german-bond-yields-fall-as-ecb-policy-decision-us-data-eyed.htmlimageLONDON: German bond yields fell on Wednesday on expectations that the European Central Bank could hint on Thursday at more monetary stimulus to counter disinflationary pressure from sliding commodity prices.

Growing concern about the health of the global economy after weak Chinese and US economic data and a renewed slide in oil prices also supported underlying demand for top-rated government bonds. Investors fear that reduced consumption from China will exacerbate a fall in oil prices and keep consumer price growth muted, putting pressure on the ECB to expand its 1 trillion euro asset purchase programme targeted to end next September.

The central bank is expected to cut its inflation forecasts at Thursday's policy meeting.

A measure of long-term market inflation expectations watched closely by the ECB fell to 1.68 percent on Wednesday from 1.74 percent on Tuesday, retreating further from the ECB inflation target of just below 2 percent.

"Investors are keenly awaiting (ECB President Mario) Draghi's press conference tomorrow and a lot of investors are not taking major positions ahead of that," said RIA Capital Markets strategist Nick Stamenkovic.

"The likelihood is that he is going to adopt a dovish posture given the rising global headwinds and the market will pay particular attention to the inflation forecasts for 2016 and 2017.

We expect a small downgrade for next year opening the door for an extension of the current QE programme although I don't think Mr Draghi will signal an imminent move tomorrow."

German 10-year yields, the benchmark for euro zone borrowing costs, were 3 basis points down at 0.78 percent, retreating from a two-week high of 0.82 percent hit on Monday after oil prices rallied 8 percent before reversing course. Yields on other top-rated bonds were down a similar amount.

FED CONUNDRUM

US private sector employment data later in the day will be watched to fine-tune expectations for the non-farm payrolls report due on Friday. The labour market report could determine whether the Federal Reserve raises interest rates at its policy meeting towards the end of the month.

The prospects for a September US rate rise have been clouded by the recent rout in Chinese markets and slide in oil prices, which has dampened inflation expectations globally.

"Our house view is that the Fed stays at the sidelines until December," said Rabobank senior rate strategist Richard McGuire.

"I see the risks tilted toward a later rather than a sooner move given the risk the disinflationary forces emanating from emerging markets are likely to remain a thorn in developed world central banks' (side) for some time to come," he told the Reuters Global Markets Forum.

The firmer tone in fixed income and a recent rise supported demand at a German auction of 3.1 billion euros of five-year paper.

Portugal was also seeing strong interest for a sale via syndication of seven-year bonds with orders topping 5 billion euros, according to Thomson Reuters markets information service IFR.

Analysts expect the sale to raise 4 billion euros.

Portuguese 10-year yields edged up 2 basis points to 2.77 percent.

Italian and Spanish 10-year yields were flat on the day at 2.00 percent and 2.15 percent, respectively.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeWed, 02 Sep 2015 12:06:02 +0000
Croatia T-bill auction misses target http://www.brecorder.com/markets/fixed-income/europe/253093-croatia-t-bill-auction-misses-target.htmlhttp://www.brecorder.com/markets/fixed-income/europe/253093-croatia-t-bill-auction-misses-target.htmlimageZAGREB: Croatia sold fewer Treasury bills than targeted at an auction Tuesday, with yields remaining flat, Finance Ministry data showed. The ministry sold 436 million kuna ($65.08 million) worth of bills against the 850 million kuna target.

"Liquidity on the market is generally good, but not distributed equally among the participants. Another reason is that the banks are cautious awaiting the government's solution for the conversion of the local loans denominated in Swiss francs," a dealer at a major local bank said.

No euro-denominated bills were offered this time. Croatia's total Treasury bill debt amounts to 20.2 billion kuna in local currency and 90.7 million euros.

The next auction will be held on Sept. 8.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeTue, 01 Sep 2015 11:48:38 +0000
Canadian dollar slides as oil prices fall http://www.brecorder.com/markets/fixed-income/americas/253007-canadian-dollar-slides-as-oil-prices-fall.htmlhttp://www.brecorder.com/markets/fixed-income/americas/253007-canadian-dollar-slides-as-oil-prices-fall.htmlimageTORONTO: The Canadian dollar weakened against the US dollar on Monday as volatile crude prices retreated and as investors positioned for month-end trading and ahead of a busy week for economic data.

Oil prices slid after staging their biggest two-day rally in six years last week, on renewed worries over excess supply and China's slowing economy.

After a quiet period on the economic data front, investors are turning their attentions to this week's Canadian data including second quarter growth data on Tuesday, trade balance figures for July on Thursday, and job numbers for August from both sides of the border on Friday.

At 9:30 a.m. EDT (1330 GMT), the Canadian dollar was trading at C$1.3291 to the greenback, or 75.24 US cents, softer than the Bank of Canada's official close of C$1.3215, or 75.67 US cents on Friday.

The currency's strongest level of the session was C$1.32, while its weakest level was C$1.3303.

On the data front, Canada's current account deficit narrowed slightly in the second quarter of 2015 to C$17.40 billion, but was greater than the C$16.90 billion shortfall predicted by analysts.

US crude prices were down 0.91 percent to $44.81, while Brent crude lost 1.72 percent to $49.19.

Canadian government bond prices were higher across the maturity curve, with the two-year price up 1.5 Canadian cents to yield 0.409 percent and the benchmark 10-year rising 29 Canadian cents to yield 1.411 percent.

The Canada-US two-year bond spread narrowed to -30.5 basis points, while the 10-year spread narrowed to -73.3 basis points.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)AmericasMon, 31 Aug 2015 16:09:18 +0000
Prices gain on China worries, month-end buyinghttp://www.brecorder.com/markets/fixed-income/americas/253001-prices-gain-on-china-worries-month-end-buying.htmlhttp://www.brecorder.com/markets/fixed-income/americas/253001-prices-gain-on-china-worries-month-end-buying.htmlimageNEW YORK: US safe-haven Treasuries prices rose on Monday on continued concerns over China and emerging market economies, while month-end buying gave longer-dated Treasuries prices a greater boost.

China, the world's second-biggest economy, will release its official reading on August factory conditions on Tuesday and economists polled by Reuters believe activity likely shrank at its fastest pace in three years. Concerns about other emerging market economies also underpinned Treasuries prices.

In addition, purchases of longer-dated Treasuries to meet with expected month-end changes to portfolio benchmarks also pushed bond prices higher, analysts said.

"The concerns about instability in the emerging markets, specifically China, will maintain that flight-to-quality bid," said Sharon Stark, chief fixed income strategist at D.A. Davidson & Co in St. Petersburg, Florida.

Stark also said uncertainty about the Fed's timeline for hiking interest rates caused some volatility in the bond market on Monday.

While yields were lower on the day, they were higher in early trading, with two-year notes hitting a more than three-week high of 0.743 percent. Shorter-dated Treasuries prices received only a slight bid given investors' nervousness about a Fed rate hike in 2015, analysts said. Shorter-dated notes are considered most vulnerable to a rate hike.

US inflation will likely rebound as pressure from the dollar fades, allowing the Fed to raise interest rates gradually, Fed Vice Chairman Stanley Fischer said on Saturday in a speech careful not to overreact to a possible Chinese slowdown.

Analysts said Fischer's comments suggested that the US central bank could still be on track to raise rates this year.

"When you have the second-largest economy in the world clearly moving toward recession, and a Fed that's going to continue moving forward despite that, it's a very good reason to flatten the curve," said Justin Hoogendoorn, fixed income strategist at BMO Capital Markets in Chicago.

He said the subdued bid for short-dated Treasuries and greater bid for longer-dated debt showed the "curve flattening" trade. US 30-year Treasuries were last up 15/32 in price to yield 2.88 percent, from a yield of 2.91 percent late on Friday. Benchmark 10-year Treasuries were last up 8/32 in price to yield 2.15 percent, from a yield of 2.18 percent late Friday.

Two-year notes were last up 1/32 in price to yield 0.71 percent, from a yield of 0.73 percent late Friday. On Wall Street, the benchmark S&P 500 stock index was last down 0.52 percent.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)AmericasMon, 31 Aug 2015 16:00:14 +0000
German yields stable after inflation surprise http://www.brecorder.com/markets/fixed-income/europe/252946-german-yields-stable-after-inflation-surprise.htmlhttp://www.brecorder.com/markets/fixed-income/europe/252946-german-yields-stable-after-inflation-surprise.htmlimageLONDON: German bond yields held firm in holiday-thinned trading on Monday, failing to take much impetus from better-than-expected euro zone inflation data or efforts by policymakers to play down the impact of China's slowing economy.

One speech in particular by US Federal Reserve vice-chair Stanley Fischer on Saturday kept alive the chance that the Fed will raise interest rates next month, the first increase in nearly a decade.

A rate hike from the world's largest economy would be felt across global markets.

Yields on U.S Treasuries and other top-rated benchmark bonds would probably rise sharply.

Other speakers at a central bankers' conference in Jackson Hole, Wyoming -- including the Bank of England's Mark Carney and the European Central Bank's Vitor Constancio -- said their economies could withstand the recent rout in China, which has set European and Asian stocks on course for their worst monthly drop in three years.

One of the fears is that reduced consumption from China will put downward pressure on already depressed oil prices and keep consumer price growth muted.

Euro zone inflation was the same in August as in July year-on-year at 0.2 percent, better than the 0.1 percent predicted by Economists in a Reuters poll.

Some market gauges indicate the euro zone may be headed back into deflation in a year's time.

While consumer price growth remains far from the ECB's target of around 2 percent, few are expecting the European Central Bank to announce more stimulus measures at its meeting this week.

"Despite sharply lower inflation expectations and slipping consumer price inflation in August, further policy easing looks premature," said Commerzbank strategist Rainer Guntermann.

Data also showed on Monday that German retail sales rose month-on-month at their strongest pace in nine months in July, reinforcing expectations that private consumption will support growth in Europe's largest economy this year.

German 10-year yields -- the euro zone benchmark -- were unchanged on the day at 0.73 percent while all other equivalents were also broadly flat on the day.

Traders said volumes were low because of a bank holiday in Britain, while month-end reporting also shackled investor activity.

While the inflation data was slightly above expectations, some analysts said it would not bring much cheer to ECB policymakers who will likely revise down their forecasts for consumer price growth this week.

In a note to clients, Barclays said stubbornly low inflation could even encourage the ECB to spring a policy surprise on Thursday.

"In all, we think the latest set of inflation data remain consistent with our recently downwardly revised euro area inflation profile for this year and next, and with our expectation that the ECB will likely engage in additional accommodative monetary policy measures by year-end, possibly as early as this week."

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeMon, 31 Aug 2015 11:52:15 +0000
France to sell up to 8.5bn euros in bonds at Thursday auction http://www.brecorder.com/markets/fixed-income/europe/252718-france-to-sell-up-to-85bn-euros-in-bonds-at-thursday-auction.htmlhttp://www.brecorder.com/markets/fixed-income/europe/252718-france-to-sell-up-to-85bn-euros-in-bonds-at-thursday-auction.html

imagePARIS: France will sell 7.5-8.5 billion euros of long-term debt at its next regular bond auction on September 3, the Agence France Tresor said on Friday.

The three lines on offer include a new 1.0 percent 10-year bond maturing in November 2025, as well as its 1.75 percent May 2023 bond and its 2.5 percent May 2030 bond.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeFri, 28 Aug 2015 12:37:58 +0000
Italy sells top amount at bond auction, 5- and 10-yr yields rise http://www.brecorder.com/markets/fixed-income/europe/252714-italy-sells-top-amount-at-bond-auction-5-and-10-yr-yields-rise.htmlhttp://www.brecorder.com/markets/fixed-income/europe/252714-italy-sells-top-amount-at-bond-auction-5-and-10-yr-yields-rise.htmlimageMILAN: Italy paid more than it did a month ago to sell five- and 10-year bonds on Friday as jitters about a slowdown in Chinese growth made investors warier of holding riskier assets.

The yield on a new 10-year bond rose at auction to 1.95 percent from 1.83 percent at a sale of the same maturity a month ago.

The support provided to weaker euro zone bonds by the European Central Bank's bond-buying programme has cushioned the impact of stronger risk aversion, capping the rise in yields.

Italy sold a total of 7.5 billion euros ($8.5 billion) in bonds, at the top of its planned issue range.

The first tranche of the new BTP bond maturing in December 2025 drew bids worth 5.5 billion euros in bids, or nearly 1.4 times the amount sold.

It also sold a five-year bond due in May 2020 at an average 0.84 percent yield, up from 0.77 percent a month ago.

The bid-to-cover was 1.53 on Friday against 1.62 times.

A floating rate CCTeu bond maturing in June 2022 was sold at an average rate of 0.65 percent, against 0.67 percent in July.

The sale was covered 1.62 times, broadly in line with last month.

Copyright Reuters, 2015

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeFri, 28 Aug 2015 12:34:34 +0000