JGB largely steady, govt sells inflation-link bonds

JGB largely steady, govt sells inflation-link bonds
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TOKYO Wed Jan 8, 2014 9:58pm EST

TOKYO Jan 9 (Reuters) – Japanese government bond prices were largely steady on Thursday, even though Tokyo’s stocks came under pressure, while the country was to sell its second inflation-linked bonds since 2008.

The 10-year yield edged up 0.5 basis point to 0.705 percent, while the 10-year JGB futures were largely unchanged at 143.72.

Tokyo’s Nikkei stock average dropped 1.3 percent in relatively active trade on Thursday morning after rising sharply on the previous day, as investors stayed risk averse before the release of U.S. nonfarm payroll data on Friday.

The finance ministry was to sell 300 billion yen of inflation-linked 10-year JGBs with a 0.1 percent coupon later in the day.

This marked the second such issue since 2008. In October, the government sold 300 billion yen of 10-year inflation-linked JGBs with strong demand.

Japan suspended issue of inflation-linked bonds in 2008, when the global financial crisis threw the country back into deflation and caused massive losses on inflation-linked JGBs.

“Valuations do not look particularly cheap and seasonality will work against the issue, but auction results should be solid given the external environment – yen depreciation and stronger-than-expected CPI inflation,” Barclays wrote in a note, referring to the latest offer.

The Bank of Japan aims to achieve a 2 percent inflation in two years, when it stunned the financial markets in April by promising to inject $ 1.4 trillion into the economy to spur growth.

BOJ board member Sayuri Shirai said it may be desirable to take more than two year to achieve the central bank’s inflation target if the burden on households and the corporate sector proves to be excessive, according to a speech released on Thursday.

The 30-year yield was down 0.5 basis point at 1.695 percent, while the 20-year yield was unchanged at 1.535 percent.

The short-dated five-year yield inched up 0.5 basis point to 0.220 percent.

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Reuters: Bonds News

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Robust U.S., euro zone data hurts euro zone bonds

Robust U.S., euro zone data hurts euro zone bonds
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Wed Dec 4, 2013 12:58pm EST

* German 10-year yields hit 6-week high

* French debt risk premium at 6-month low

* Portuguese bond rally falters

By Emelia Sithole-Matarise

LONDON, Dec 4 (Reuters) – Euro zone bonds fell across the board on Wednesday as U.S. data showed growing momentum in the world’s biggest economy that could prompt the Federal Reserve to start scaling back its monetary stimulus soon.

German 10-year yields rose to their highest in six weeks, with the euro zone’s safe-haven debt underperforming the rest of the market, notably French bonds, whose 10-year yield premium hit its lowest in six months at around 40 basis points.

Bunds were on the back foot early in the session after data showed the pace of recovery in the euro zone private sector slowing but ahead of market expectations.

The sell-off gained pace after stronger-than-expected U.S. employment figures – a precursor for non-farm payrolls data on Friday – that suggested the labour market is robust enough for the Federal Reserve to start trimming its bond purchases.

Investors are very sensitive to economic data before a European Central Bank policy meeting on Thursday and the Fed’s next policy meeting on Dec. 17-18.

“The ADP employment data was strong and people are saying it could lead to payrolls on Friday being robust as well and increases the chances of Fed tapering,” said Alan McQuaid, chief economist at Merrion Stockbrokers.

“The market is a bit nervous going into the big events of the ECB and the NFP (non-farm payrolls report), so going into that the bias for yields is going to be on the upside.”

Bund futures dropped 90 ticks to end at 140.38, pushing the cash German 10-year yields 9 basis points to 1.82 percent, the highest since Oct. 22.

Dutch yields and Finnish yields were up by a similar amount, while Italian equivalents were 7 bps higher at 4.16 percent .

FRENCH SWEET SPOT

French bonds slightly outperformed the bloc’s other higher-rated paper, pinching their yield gap over German Bunds by 4 bps to 40 bps, its least since May 20.

The risk premium on French bonds has been grinding lower over the past month as investors shrugged off a one-notch Standard & Poor’s one-notch downgrade of the country’s credit ratings. S&P warned the pace of reforms was not enough to put the euro zone’s second largest economy back on track.

Although market participants have expressed concern at France’s slow pace of reform, and that it could struggle to push through further unpopular changes, its ability to fund itself is solid and investors continue to like its liquid bond market.

“This is a country where access to capital markets is unquestioned, especially in an environment where the ECB has spoken out its willingness to help out sovereign members,” said Kommer van Trigt, head of rates team at asset manager Robeco.

“What you see in the market is day-by-day, spreads are very stable for France, and also the interest of, for example, Asian investors remains very high … If you look at our portfolios we are not overly cautious on French government bonds.”

At the lower end of the credit spectrum, a rally in Portuguese bonds triggered by a move to lower the country’s near-term refinancing burden stalled, caught up in the broader market sell-off. There were also some lingering concerns that Lisbon may need more international aid.

The country swapped 6.6 billion euros of short-term bonds for longer-dated ones on Tuesday, a larger than expected amount that moves it closer to its goal of regaining market access next year as it exits a 78 billion euro bailout programme.

But Portugal still has to repay 5 billion euros of bonds maturing in June and 6.2 billion euros in October. Some analysts are wary that the country may need at least a precautionary credit line if not more cash from international lenders to finance those debt expiries.

“Standing completely on their own is going to be very difficult,” said Peter Shaffrik, head of European rates strategy at RBC Capital Markets.

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TREASURIES-U.S. bonds rise; light buyside bid for 3-month bills

TREASURIES-U.S. bonds rise; light buyside bid for 3-month bills
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Mon Nov 18, 2013 1:16pm EST

* Record highs on Wall Street restrain gains for safe-haven debt

* Lightest buyside demand for 3-month bill auction since July

* Three-month bills to mature after Feb. 7 debt ceiling mark

* Retail sales, consumer price, home sales data due on Wednesday

By Ellen Freilich

NEW YORK, Nov 18 (Reuters) – U.S. Treasury debt prices rose on Monday, supported by the prospect of “easy” monetary policy, but gains were limited by investors’ preference for riskier assets.

U.S. stocks advanced as the Dow and the S&P 500 climbed to record highs, reacting to prospects for continued economic stimulus from the Federal Reserve.

Continued reaction to comments from the likely next Fed Chairperson Janet Yellen drove the Treasury market’s gains, said Kevin Giddis, head of fixed income capital markets head at Raymond James.

Better buying in the middle of the maturity curve from international real money accounts and curve flattening trades from various accounts were two features of the trading, said Thomas di Galoma, co-head of fixed income rates at ED&F Man Capital in New York.

THREE-MONTH TREASURY BILL AUCTION

The Treasury’s weekly sales of three- and six-month bills resulted in the lightest buyside demand since July for three-month bills, said Stone & McCarthy Research Associates analyst Cathy Guo.

The six-month bills drew a better bid than the three-month bills.

“The maturity date of the three-month bills in late February may have something to do with it, but investors will be cautious with front-end investments around the time that the debt ceiling is reinstated,” said Thomas Simons, vice president and money market economist at Jefferies in New York.

As of now, the Treasury is allowed to issue as much debt as needed through Feb. 7. At that point, Congress must raise the debt limit to let the Treasury increase the total amount of official borrowing.

The benchmark 10-year Treasury note rose 7/32, leaving its yield at 2.69 percent.

Absent fresh economic data, there was little besides the backdrop of monetary accommodation and the lure of riskier assets to guide the U.S. Treasury market on Monday.

Wednesday is the first day of the week offering a basket of fresh economic data. Figures on October retail sales, consumer prices, and home sales are due that day.

“Wednesday is when the fireworks could begin: Retail sales, the consumer price index, existing home sales and minutes from the October 29-30 Fed policy meeting could make trading U.S. government securities quite interesting,” Giddis said.

The 30-year bond rose 15/32 in price at 99-19/32 for a yield of 3.77 percent.

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Bankrupt Alabama county prices nearly $1.8 bln of bonds for retail buyers

Bankrupt Alabama county prices nearly $1.8 bln of bonds for retail buyers
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Fri Nov 15, 2013 12:14pm EST

Nov 15 (Reuters) – Alabama’s bankrupt Jefferson County priced nearly $ 1.8 billion of sewer revenue debt on the first day of a two-day retail order period, a market source said on Friday.

The pre-sale period reserved for wealthy individuals and other relatively small investors will continue on Monday. Institutional pricing is set for Tuesday.

No further details such as pricing were available at this time.

Citigroup is the senior manager on the sale.

Reuters: Bonds News

Read more about Bankrupt Alabama county prices nearly $1.8 bln of bonds for retail buyers and other interesting subjects concerning Bonds at TheDailyNewsReport.com

VIDEO: Thursday, October 10: Watch Gilead Sciences

Polya Lesova takes a look at which stocks traders will be watching during market action, including Gilead Sciences, Citrix Systems, and Ruby Tuesday. Photo: gilead.com.

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VIDEO: Thursday, October 10: Watch Gilead Sciences

VIDEO: Thursday, October 10: Watch Gilead Sciences

Polya Lesova takes a look at which stocks traders will be watching during market action, including Gilead Sciences, Citrix Systems, and Ruby Tuesday. Photo: gilead.com.

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VIDEO: Thursday, October 10: Watch Gilead Sciences

VIDEO: Wednesday, October 9: New iPad From Apple?

Alexandra Scaggs takes a look at which stocks traders will be watching during market action, including Apple, Alcoa, and Yum Brands. Photo: Getty Images.

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VIDEO: Wednesday, October 9: New iPad From Apple?

VIDEO: Barron"s Buzz: How to Navigate the Bond Market

Interest rates are going to rise. Can unrestrained bond funds make falling off the cliff be more of a gentle tumble? Senior editor Jack Hough previews the latest issue of Barron’s Magazine. Photo: AP

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VIDEO: Barron"s Buzz: How to Navigate the Bond Market

U.S. Supreme Court takes no action on Argentina bonds case

WASHINGTON | Tue Oct 1, 2013 9:43am EDT

WASHINGTON (Reuters) – The U.S. Supreme Court on Tuesday took no action on whether it should hear an appeal filed by Argentina over its battle with hedge funds that refused to take part in two debt restructurings that sprang from the country’s 2002 default.

The case was not mentioned in a list of new cases the court agreed to hear on Tuesday ahead of its new term, which starts on Monday, October 7.

Based on the court’s usual practice, Tuesday’s development may mean either that the court will decline to hear the case or that it will ask the Obama administration to weigh in on whether the dispute is worth the court’s attention.

Reuters: Politics

U.S. Supreme Court takes no action on Argentina bonds case