U.S. Treasuries Rise After Yields on 10-Year Notes Reach Five-Year High

(Bloomberg) -- Treasuries rose 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.

A rout in U.S. notes during the past six weeks had pushed
10-year yields to the highest since 2002. Former Federal Reserve
Chairman Alan Greenspan yesterday predicted higher market rates
for Treasuries and emerging market debt.


Read more at Bloomberg Bonds News

Emerging-Market Bonds Fall as China's Slide Cuts Demand for Risky Assets

(Bloomberg) -- Emerging-market bonds fell after
China's tripling of a tax on securities transactions cut into
demand for high-risk, high-yielding assets.

Stocks in Asia, Europe and the U.S. fell, further weakening
demand for emerging-market securities, after China raised the
tax in a bid to cool the rally in the country's equities market.
Central bank officials, former U.S. Federal Reserve Chairman
Alan Greenspan and Li Ka-shing, Asia's richest man, have all
warned of a looming rout in Chinese stocks since the start of
May.


Read more at Bloomberg Emerging Markets News

Polish Zloty Drops for Third Week Against Euro as Investors Shun Risk

(Bloomberg) -- The Polish zloty fell for a third week
against the euro as investors turned more risk averse on concerns
about the pace of a rally in China's stocks and political tensions
with the army in Turkey.

The zloty was the sixth worst-performer against the euro of
71 currencies monitored by Bloomberg in the past five days.
Investor sentiment toward emerging markets also soured after
Federal Reserve Chairman Alan Greenspan said on May 23 that
Chinese equities might undergo a ``dramatic contraction.''


Read more at Bloomberg Currencies News

Polish Zloty Set for Third Week of Declines Versus Euro on Risk Aversion

(Bloomberg) -- The Polish zloty is set for a third
week of declines as investors turn more risk averse on concerns
about the pace of a rally in China's stocks and political tensions
with the army in Turkey.

The zloty was the fourth worst-performer against the euro of
71 currencies monitored by Bloomberg in the past five days.
Investor sentiment toward emerging markets also soured after
Federal Reserve Chairman Alan Greenspan said on May 23 that
Chinese equities might undergo a ``dramatic contraction.''


Read more at Bloomberg Currencies News

China's Stocks Decline After Greenspan's Comments; Shenergy Leads Falls

(Bloomberg) -- China's stocks fell after former
Federal Reserve Chairman Alan Greenspan said he was concerned
that Chinese equities might undergo a ``dramatic contraction.''

Daqin Railway Co. and Shenergy Co. paced the decline.


Read more at Bloomberg Stocks News