U.S. Treasuries Decline on Speculation Bonds Have Become Too Expensive

(Bloomberg) -- Benchmark 10-year U.S. Treasuries
fell, snapping four days of gains, on speculation the securities
have become too expensive with yields near a 10-week low.

The yield on the 10-year note rose 2 basis points, or 0.02
percentage point, to 4.78 percent at 1:32 p.m. in Singapore,
according to bond broker Cantor Fitzgerald LP. The price of the
4 1/2 percent note due May 2017 fell 5/32, or $1.56 per $1,000
face amount, to 97 26/32. Yields move inversely to bond prices.
Ten-year note yields fell 19 basis points last week, the biggest
decline since the period ended Sept. 22.


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Emerging debt-Prices lower on strong US jobs data

(Reuters) - Brazil's local rates were an exception, as a moderate
reading of the country's benchmark inflation index supported
the view that the central bank will keep cutting interest rates
at the current pace of half a percentage point for a while.




Yields on the benchmark 10-year U.S. Treasury note
rose to 5.19 percent from 5.14 percent late on
Thursday on news 132,000 new jobs were added to non-farm
payrolls in June, more than the 120,000 expected by economists.
In the beginning of the week, 10-year Treasuries yields were
below 5 percent.


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Colombia's Peso Weakens, Bonds Decline on U.S. Rates, June Employment Data

(Bloomberg) -- Colombia's peso weakened the most in
a week and local government bonds declined amid expectations
that pressure on U.S. interest rates from an expanding economy
will diminish demand for riskier, emerging-market assets.

Yields on U.S. Treasuries rose today after a report showed
U.S. companies added more jobs than expected in June.


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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.


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India, Indonesia, South Korea, Singapore, Taiwan: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The central bank sold 1 billion yuan ($131 million)
of three-year notes at a weekly auction yesterday, with the
yield rising for the first time in a month to 3.49 percent. The
government will sell 30 billion yuan of 10-year bonds today. It
sold the same maturity at a 3.4 percent yield in March.


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Pimco's McCulley Says `Conundrum' to Unwind as Central Banks Diversify

(Bloomberg) -- Yields on longer-maturity Treasuries
are likely to climb as foreign central banks diversify their
holdings, said Paul McCulley, a bond fund manager at Pacific
Investment Management Co.

``The bond community is recognizing in the years ahead the
conundrum is going to be reversed as foreign central banks moved
out the risk spectrum,'' McCulley said in an interview from
Newport Beach, California.


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Treasuries Decline, Pushing Yields Close to Five-Year High on Inflation

(Bloomberg) -- Treasuries fell, pushing yields
close to a five-year high, as a report on producer prices
signaled that inflation quickened last month.

Yields on 10-year U.S. notes are set to rise for a sixth
straight week as investors are pricing in the risk that
inflation won't moderate. Faster inflation erodes the value of
Treasuries' fixed payments and may fuel speculation the Federal
Reserve will lift interest rates later this year.


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Treasuries Little Changed; Pare Declines Amid Record Mortgage Foreclosures

(Bloomberg) -- Treasuries were little changed, with
yields near a five-year high, as signs of quicker inflation
bolstered speculation the Federal Reserve will lift interest
rates later this year.

Yields on 10-year U.S. notes are set to rise for a sixth
straight week as investors priced in the risk that inflation
won't moderate. Faster inflation erodes the value of Treasuries'
fixed payments. Debt prices erased an earlier drop as the share
of risky U.S. mortgages entering foreclosure set a record.


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Thai Bonds Gain as Benchmark Yields Near 14-Week High Attract Investors

(Bloomberg) -- Thailand's 10-year bonds rose,
halting a five-day decline, on speculation yields at the highest
in more then three months will attract investors. The baht was
little changed.

Yields on the securities have risen by more than half a
percentage point this month as investors bet the central bank
will slow the pace of interest rate cuts in the second half of
the year. The Bangkok-based University of Thai Chamber of
Commerce will release its May consumer confidence index today.


Read more at Bloomberg Bonds News

China, India, Philippines, Singapore, Thailand: Asia Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The government yesterday moved to expand the
nation's debt market by giving the stock-market regulator the
power to approve bond sales by publicly traded companies. The
China Securities Regulatory Commission will approve sales of
bonds with maturities of more than one year by domestic
companies, the agency said in a statement on its Web site. The
regulator didn't say when the rule will take effect.


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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

China, India, Singapore, Taiwan, the Philippines: Asia Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The economy will grow 10.4 percent next year, the
Organization for Economic Co-operation and Development said in
its semi-annual outlook released May 24. That's less than the
10.7 percent the Paris-based group forecast six months ago.
Growth this year is predicted to be 10.4 percent, compared with
an earlier forecast of 10.3 percent.


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U.S. 10-Year Notes Head for Third Weekly Loss on Signs of Economic Growth

(Bloomberg) -- U.S. 10-year Treasury notes headed
for a third weekly loss as signs of growth in the economy
undermined expectations the Federal Reserve will cut interest
rates in 2007.

Yields held near the highest since January after the
Commerce Department said new home sales rose by the most in 14
years in April, indicating a rebound in a slowing housing market.
Fed Governor Frederic Mishkin said policy makers ``must never
take our eye off of the inflation ball,'' in a speech yesterday
at a Dallas Fed Bank conference.


Read more at Bloomberg Bonds News

China, Indonesia, Philippines, Taiwan, Singapore: Asia Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: The government will sell 30 billion yuan ($3.9
billion) of seven-year bonds today. It last sold similar-
maturity debt on Feb. 5 at a yield of 2.93 percent. China should
be cautious when using exchange-rate policy in foreign relations
to avoid strengthening expectations of further yuan appreciation,
Ding Zhijie, deputy dean of the School of Finance at the
University of International Business and Economics in Beijing,
wrote in the Shanghai Securities News yesterday.


Read more at Bloomberg Bonds News