Treasuries Posting Best Returns Since 2002 as Subprime Losses Stir Concern

(Bloomberg) -- So much for the bear market in
Treasuries.

Yields on 10-year notes fell below where they started in
January after climbing to a five-year high in June. Government
securities are on track to return 5.3 percent this year, the best
performance since gaining 12 percent in 2002, Merrill Lynch & Co.
index data show.


Read more at Bloomberg Bonds News

U.S. Notes Rise as Investors' Risk Appetite Wanes, Asian Stocks Decline

(Bloomberg) -- U.S. Treasuries rose, with the yield
on 10-year notes falling to the lowest in almost two months, on
speculation investors sold stocks and sought the relative safety
of government debt.

The yield on the 4 1/2 percent 10-year note maturing in May
2017 fell 2 basis points, or 0.02 percentage point, to 4.93
percent as of 1:20 p.m. in Singapore, according to bond broker
Cantor Fitzgerald LP. The price rose 4/32, or $1.25 per $1,000
face amount, to 96 21/32. Bond yields move inversely to prices.


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Limited Brands sells $1 bln debt in 2-part sale

(Reuters) - The offering included $700 million in 10-year notes yielding 1.80 percentage points over U.S. Treasuries and $300 million in 30-year bonds yielding 2.40 percentage points over Treasuries.



The joint lead managers on the sale were Banc of America Securities and JP Morgan.


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Stocks race up, dollar weakens on rate outlook

(Reuters) - Japanese government bonds tracked a rise in U.S. Treasuries, although gains were limited as investors waited on an auction of 10-year notes and eyed a likely Bank of Japan interest rate hike as early as August.




Tokyo's Nikkei average rose 0.3 percent by the midsession, although traders said volumes were low. MSCI's broadest index of shares elsewhere in Asia hit an all-time high earlier and by 0214 GMT was up 1 percent.


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Treasuries Extend Advance After Consumption Report Shows Slowing Inflation

(Bloomberg) -- Treasuries extended their gains as a
gauge watched by the Federal Reserve showed slowing inflation.

The yield on benchmark 10-year notes fell 3 basis points,
or 0.03 percentage point, to 5.08 percent at 8:35 a.m. in New
York, according to bond broker Cantor Fitzgerald LP. The price
of 4 1/2 percent securities maturing in May 2017 rose 6/32, or
$1.88 per $1,000 face amount, to 95 17/32.


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U.S. Notes Set for Quarterly Loss as Bets on Fed Interest Rate Cut Decline

(Bloomberg) -- U.S. Treasuries headed for their
biggest quarterly loss since the first three months of 2006 as
traders reduced bets the Federal Reserve will cut interest rates.

Treasury securities, which handed investors a loss of 0.8
percent this quarter, slumped after the Fed yesterday kept its
benchmark rate unchanged at 5.25 percent, higher than yields
available on 10-year notes, and said inflation is its
``predominant'' concern. A report today will probably show the
Fed's preferred measure of costs slowed in May, while holding
close to the top of its target range.


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Treasuries Erase Loss After Yield Rises to Highest in More Than Five Years

(Bloomberg) -- Treasuries stabilized after yields
on 10-year notes reached a five-year high, prompting speculation
increased borrowing costs for businesses and households will
curb growth in the U.S. economy.

``The housing sector has already slowed down and rising
yields will hurt it again,'' said Masataka Horii, a manager for
the $46 billion Kokusai Global Sovereign Open fund in Tokyo, the
world's second-biggest bond fund. ``We don't have any concern
about inflation.''


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U.S. 10-Year Treasuries Head for Biggest Weekly Decline Since March 2005

(Bloomberg) -- U.S. Treasury 10-year notes are poised
for their biggest weekly decline in more than two years, even
after recovering from early losses today, on concern that faster
economic growth will lead central banks to raise interest rates.

Ten-year notes, whose yields determine interest rates on
mortgages and corporate bonds, had their biggest slump in more
than three years yesterday. The yield touched 5.25 percent
earlier today, the highest since May 2002.


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U.S. Treasuries Rise as Highest 10-Year Yields This Year Attract Buyers

(Bloomberg) -- U.S. Treasury 10-year notes rose as
the highest yield in almost a year attracted investors.

The advance pared the 10-year note's biggest weekly drop in
more than two years. Government debt markets in Japan, Germany,
Poland and South Africa also slid this week as investors,
anticipating faster expansion in the global economy, demanded
higher yields to compete with expected returns on riskier
investments.


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TREASURIES-Bonds add gains after jobless claims data

(Reuters) - Benchmark 10-year notes were up 4/32 in price for a yield of 4.64 percent versus 4.65 percent shortly prior to the release of the claims data. Ten-year yields were at 4.66 percent late Wednesday.

Bond prices and yields move inversely.


Read more at Reuters.com Bonds News