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

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

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


Read more at Bloomberg Emerging Markets News

European Government Bonds May Drop for Second Day on Higher Rates Outlook

(Bloomberg) -- European government bonds may decline
for a second day on speculation the European Central Bank will
keep raising interest rates to curb quickening economic growth.

Benchmark debt fell, pushing 10-year yields up from a week-
low, as the ECB said rates are still low enough to support growth
and the European Union said the region's economy grew at a
faster-than-expected pace in the first quarter. A report July 16
may say inflation held at 1.9 percent, just below the ECB's 2
percent target, according to economists in a Bloomberg survey.


Read more at Bloomberg Bonds News

European Government Bonds May Gain on Speculation Yields Reflect Rate Risk

(Bloomberg) -- European bonds may gain for a second
day on speculation yields already reflect the risk of the
European Central Bank raising interest rates again this year.

The yield on the benchmark 10-year bund has risen 16 basis
points in the past week after ECB President Jean-Claude Trichet
signaled the bank would raise rates further. Debt may also gain
on speculation yields near a five-year high will attract buyers.


Read more at Bloomberg Bonds News

TREASURIES-Bonds fall on lower European debt, ADP jobs data

(Reuters) - NEW YORK, July 5 - U.S. Treasury debt prices fell
on Thursday, following the lead of weaker euro zone debt and
after stronger-than-expected data on jobs gave a boost to
investor forecasts for Friday's non-farm payrolls report.




Euro zone debt fell on Thursday before an interest rate
decision by the European Central Bank, which, as expected left
rates on hold at 4 percent.


Read more at Reuters.com Bonds News

European Government Bonds May Drop as Economic, Rate Outlook Deters Buyers

(Bloomberg) -- European government bonds may fall as
stronger-then-anticipated economic growth in the euro region
underpins views the European Central Bank needs to raise interest
rates further from a six-year high.

Yields on 10-year German bunds, Europe's benchmark, may
climb for a second day after concerns spurred by terrorist plots
in the U.K. sent them to the lowest in three weeks. ECB President
Jean-Claude Trichet may repeat his view borrowing costs are still
low enough to fuel expansion in the $10.4 trillion economy when
the bank's policy makers meet tomorrow to set rates.


Read more at Bloomberg Bonds News

Yield rises at Egyptian 63-day deposit auction

(Reuters) - The average yield rose at a 63-day deposit auction by the Central Bank of Egypt on Wednesday to 9.049 percent from 8.986 percent a week earlier.

The bank accepted bids for 1.51 billion Egyptian pounds ranging from 8.9 to 9.12 percent, the central bank said.


Read more at Reuters Africa

European Government Bonds Post Weekly Gain as Reports Show Slowing Economy

(Bloomberg) -- European government bonds rallied
this week after a report showed business confidence in Germany,
the region's largest economy, fell more than expected in June.

Benchmark two-year notes posted a weekly gain after the Ifo
institute yesterday said its German sentiment index fell to 107
from 108.6 in May. Economists had expected a reading of 108.4.
Separate reports this week showed worsening optimism among German
investors and Italian consumers, damping the chances of interest-
rate increases by the European Central Bank.


Read more at Bloomberg Bonds News

Gold, Silver Little Changed in Asian Trading Amid Interest Rate Concerns

(Bloomberg) -- Gold was little changed in Asia amid
speculation higher global interest rates may reduce demand for
the precious metal as an alternative investment. Silver was also
little changed.

Holding gold, which yesterday snapped a five-day climb,
becomes less attractive when rates rise as it has no fixed
returns. The European Central Bank raised its benchmark rate to
the highest in six years June 6 and is likely to raise rates at
least once more this year, Ryohei Muramatsu, manager of Group
Treasury Asia at Commerzbank, said today in Tokyo.


Read more at Bloomberg Commodities News

European Yields Hold Near Six-Year High on Policy Maker's Hawkish Remarks

(Bloomberg) -- European two-year note yields held
near the highest in more than six years as European Central Bank
official Jose Manuel Gonzalez-Paramo said monetary policy was
still accommodative, indicating interest rates in the region have
further to rise.

The drop in benchmark debt also sent 10-year bund yields to
near their strongest since August 2002 as traders add to bets the
ECB will lift borrowing costs twice more this year. Germany's
Bundesbank said in a report today first-quarter growth in
Europe's largest economy was ``remarkable.''


Read more at Bloomberg Bonds News

European Bonds Fall For Sixth Week as ECB Signals Higher Interest Rates

(Bloomberg) -- European government bonds fell for a
sixth week after central bank officials said interest rates may
need to rise to curb accelerating growth in the $10.4 trillion
economy.

Benchmark 10-year bonds posted their longest run of weekly
losses since January as yields rose to the highest since August
2002. European Central Bank policy maker Axel Weber said late
yesterday that interest-rate policy is ``still far from being
restrictive'' on economic growth.


Read more at Bloomberg Bonds News

European Government Bonds Gain; Yields Near 4 1/2-Year High Lure Investors

(Bloomberg) -- European government bonds advanced,
snapping the steepest two-day slide since March 2006, as yields
near the highest in 4 1/2 years attracted investors to fixed-
income debt.

Benchmark bunds slid by the most since April last week, with
10-year yields, which reflect investors' predictions for
inflation, touching the highest since October 2002. Bonds pared
some of their advance today after European Central Bank President
Jean-Claude Trichet reiterated that interest rates are still low
enough to support economic growth, suggesting he sees room for
further increases.


Read more at Bloomberg Bonds News

European Government Bonds May Fall After Trichet Says Rates Support Growth

(Bloomberg) -- European government bonds may fall
after European Central Bank President Jean-Claude Trichet said
euro-region interest rates are still low enough to help economic
growth, allowing for further borrowing-cost increases.

Two-year yields fell from a six-year high yesterday after
Trichet failed to signal the ECB will raise interest rates beyond
this year, and as it kept its inflation forecast for 2008
unchanged. Interest-rate futures show traders are betting on at
least one more quarter-point rate increase from 4 percent.


Read more at Bloomberg Bonds News

GLOBAL MARKETS-Inflation fears rattle stocks, bonds rise

(Reuters) - NEW YORK, June 6 - U.S. stocks fell sharply on
Wednesday after data showing higher-than-expected labor costs
stirred concerns about inflation, and the sell-off in equities
helped bonds break out of their recent losses.




The euro declined despite the European Central Bank's hiking
of euro-zone rates by 25 basis points to 4 percent, the highest
level since September 2001. Euro traders cashed in the currency
because the bank gave no indication that it would keep raising
rates beyond 2007. The ECB's rate increase had long been
expected.


Read more at Reuters.com Bonds News

Euro Slides Against Dollar, Yen; Traders Pare Bets on Rates After Trichet

(Bloomberg) -- The euro slid against the dollar as
comments by European Central Bank President Jean-Claude Trichet
prompted traders to pare bets that interest rates will rise
twice more this year.

The ECB today lifted its benchmark rate to a six-year high
of 4 percent, as predicted by all 52 economists Bloomberg
surveyed. Trichet said after the decision that the bank will
``closely monitor'' inflation. Previously, he has used the term
``strong vigilance'' to signal higher borrowing costs.


Read more at Bloomberg Currencies News

Trichet Says Monetary Policy Is `Still Accommodative' After Rate Increase

(Bloomberg) -- European Central Bank President Jean-
Claude Trichet said interest rates in the 13 euro nations are
still low enough to support economic growth.

``After today's increase, given the positive economic
environment in the euro area, our monetary policy is still on
the accommodative side,'' Trichet said at a press conference in
Frankfurt today.


Read more at Bloomberg Bonds News

ECB Raises Interest Rates to Six-Year High of 4 Percent to Stem Inflation

(Bloomberg) -- The European Central Bank raised
interest rates to a six-year high today to keep economic growth
from fueling inflation in the 13 nations sharing the euro.

ECB policy makers, led by President Jean-Claude Trichet,
increased the benchmark refinancing rate by a quarter-point to 4
percent, as anticipated by all 52 economists in a Bloomberg News
survey. That's the eighth increase since late 2005 and the
highest level since August 2001. The Frankfurt-based bank will
increase its key rate at least once more this year, a separate
survey shows.


Read more at Bloomberg Bonds News

European Bonds Little Changed Before ECB Meeting; Rate Increases Expected

(Bloomberg) -- European government bonds were little
changed amid speculation European Central Bank policy makers led
by President Jean-Claude Trichet will lift interest rates today a
quarter point and hint at additional increases.

Yields on two-year notes, more sensitive to interest-rate
expectations, are at a six-year high on concern the central bank
will have more to do to rein in inflation because economic growth
in the euro region is beating expectations. The bank will raise
its forecasts for inflation and economic growth, the Financial
Times Deutschland reported on June 4.


Read more at Bloomberg Bonds News

Euro Trades Near Record High Against Yen on Outlook for ECB Rate Increases

(Bloomberg) -- The euro traded near a record high
against the yen on speculation the European Central Bank will
raise interest rates this year to stem inflation.

The 13-nation currency rose from a seven-week low against
the dollar yesterday after Financial Times Deutschland said the
ECB will lift forecasts for inflation and economic growth. The
ECB will lift its benchmark rate tomorrow to 4 percent from 3.75
percent, according to all 52 economists surveyed by Bloomberg
News.


Read more at Bloomberg Currencies News

European Bonds Fall on Rates Outlook; Two-Year Yields Rise to 6-Year High

(Bloomberg) -- European two-year government note
yields rose to the highest since May 2001 as investors add to
bets the region's central bank will increase interest rates
further on signs of faster expansion in the 13-nation economy.

Benchmark two-year yields have climbed more than a quarter
of a percentage point in May as a report today showed confidence
in the $10.4 trillion euro region economy climbed this month to
the highest in almost six years. The European Central Bank has
signaled it will raise borrowing costs next week.


Read more at Bloomberg Bonds News

Lazard to buy 50 percent stake in Argentina firm

(Reuters) - Terms were not disclosed. New York-based Lazard said it planned to rebrand the acquired entity MBA Lazard. It said the acquisition, together with the Brazilian joint venture Signatura Lazard, would give it coverage in all major financial markets in Central and South America.



Buenos Aires-based MBA also has offices in Uruguay and Panada, and since last year has had a joint venture, Altis-MBA, in Chile. Lazard said the MBA acquisition was subject to approval by the Central Bank of Argentina.


Read more at Reuters.com Mergers News