Fidelity Inflation Bond Fund Trails Vanguard After Subprime Mortgage Rout

(Bloomberg) -- Fidelity Investments' Inflation-
Protected Bond Fund is lagging behind its biggest competitor,
Vanguard Group, after losses in subprime mortgages, this year's
worst-performing debt market.

The $1.3 billion mutual fund, run by William Irving in
Merrimack, New Hampshire, rose 3.3 percent this year, trailing
the 4 percent gain of the Vanguard Inflation-Protected
Securities Fund, which holds no mortgage bonds. The Fidelity
fund advanced at an annual rate of 5.6 percent during the past
five years, compared with the 6 percent return of the $10.2
billion Vanguard fund, data compiled by Bloomberg show.


Read more at Bloomberg Exclusive News

TREASURIES-Bonds fall as stocks turn higher

(Reuters) - Bond prices mainly have been moving in the opposite
direction of stocks -- when stocks slide, fearful investors
turn to the relative safety of bonds, and when stocks show
signs of life, bonds retreat.




"I really think Treasuries are just watching stocks -- we
have no other drivers for today," said Beth Malloy, bond market
analyst at Briefing.com in Chicago, adding "we are also weighed
by last week's rally."


Read more at Reuters.com Bonds News

U.S. Treasuries Fall, Pushing 10-Year Yield up From Lowest in Seven Weeks

(Bloomberg) -- U.S. Treasuries fell, pushing the
yield of the 10-year benchmark note up by the most in almost two
weeks.

The yield on the benchmark 10-year note rose 2 basis points,
or 0.02 percentage point, to 4.92 percent as of 7:20 a.m. in
London, according to bond broker Cantor Fitzgerald LP. The price
of the 4 1/2 percent note due May 2017 declined 4/32, or $1.25
per $1,000 face value, to 96 24/32. Bond yields move inversely
to prices.


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.


Read more at Bloomberg Bonds News

Emerging debt-Bonds fall as global credit jitters mount

(Reuters) - Overall emerging market returns fell 0.30 percent,
reversing Thursday's 0.23 percent gain, according to JP
Morgan's Emerging Markets Bond Plus Index .




Emerging bond spreads over U.S. Treasuries widened 7 points
to near a four-month high of 180 basis points, as investors
worldwide turned their back on credits with a taint of risk.


Read more at Reuters.com Bonds News

TREASURIES-10Y yield falls to 6-week low on credit concerns

(Reuters) - The benchmark 10-year note's yield dipped briefly below
4.984 percent to the lowest level since June 7th.
Bond yields and prices move inversely.




Read more at Reuters.com Bonds News

India Bonds End Three-Day Gain; Chidambaram Calls for `Tight' Money Policy

(Bloomberg) -- India's 10-year bonds fell, ending
three days of gains, after Finance Minister Palaniappan
Chidambaram said the nation will keep a ``fairly tight''
monetary policy to curb inflation.

Yields rose from the lowest in five months on speculation
the central bank will raise interest rates or drain spare cash
from the banking system to slow price gains. Bonds also dropped
on concern a rally in crude oil prices will stoke inflation in
India, which imports three-fourths of its energy requirements.


Read more at Bloomberg Bonds News

Argentina stocks close at record high, bonds flat

(Reuters) - Bonds closed flat as foreign institutional investors,
normally heavy traders in Argentine markets, were absent due
to the U.S. Independence Day holiday.




The MerVal index of 21 leading stocks rose 0.97
percent to close at 2,252.40 points.


Read more at Reuters.com Bonds News

TREASURIES-Bonds fall in short pre-holiday session

(Reuters) - NEW YORK, July 3 - U.S. Treasuries fell in
holiday-thinned trade on Tuesday as a firm stock market and
surprisingly strong factory orders offset weak data on housing
and any lingering safe-haven bid on global security concerns.




Bonds briefly trimmed their losses after a report showed
pending sales of existing U.S. homes in May unexpectedly fell
to their lowest level in more than 5-1/2 years. For details,
see [ID:nN0385388].


Read more at Reuters.com Bonds News

Taiwan Dollar Rises on Interest-Rate Increase; Government Bonds Advance

(Bloomberg) -- Taiwan's dollar rose to the highest
in five months after the central bank raised its benchmark
interest rate by twice as much as expected. Bonds gained.

The currency headed for its biggest weekly advance since
the five days to Dec. 1 after the central bank yesterday lifted
the discount rate on 10-day loans by 0.25 percentage point to
3.125 percent. Taiwan's rate is the second-lowest in Asia after
Japan, encouraging investors to borrow the currency to buy
higher-yielding assets abroad.


Read more at Bloomberg Bonds News

European Government Bonds Decline; 10-Year Yield Advances to 4.64 Percent

(Bloomberg) -- European government bonds fell in
London, erasing earlier advances.

The yield on the 10-year bund rose 4 basis points to 4.64
percent by 2:18 p.m. The price of the 4.25 percent bond due July
2017 fell 0.29, or 2.9 euros per 1,000-euro ($1,343) face amount,
to 96.91. Bond yields move inversely to prices.


Read more at Bloomberg Bonds News

Namibia utility to raise R3 bln in bonds for growth

(Reuters) - Namibia's national power utility plans to raise 3 billion rand to expand its transmission network to neighbour Zambia, the company said on Wednesday.

Half of the money would be raised at the South African Bond Exchange, and the rest would be raised in Namibian bonds, a South African bond official close to the deal told Reuters.


Read more at Reuters Africa

TREASURIES-Prices up on weaker-than-expected US housing index

(Reuters) - The benchmark U.S. Treasury 10-year note rose
3/32 in price for a yield of 5.15 percent, compared with 5.17
percent late on Friday. Last week, 10-year yields reached a
five-year high of 5.33 percent. Bond prices and yields move
inversely.




Read more at Reuters.com Bonds News

Japanese Government Bonds Advance; Yields Near One-Year High Lure Buyers

(Bloomberg) -- Japanese bonds gained after 10-year
yields near the highest in almost a year attracted some investors.

Bonds in Japan rose for a third day after a rally in
Treasuries on June 15 lowered U.S. 10-year yields from near their
highest in five years. U.S. bonds had gained after a report showed
inflation slowed. Bank of Japan Governor Toshihiko Fukui said last
week that he wants to be more convinced that Japan's economic
growth is sustainable before proposing an interest-rate increase.


Read more at Bloomberg Bonds News

Focus DIY to Pay Noteholders 40% of Face Value After Cerberus Takeover

(Bloomberg) -- Focus DIY Group Ltd. will pay
investors 40 percent of face value on 100 million pounds ($197
million) of debt if the U.K. home improvement chain is bought by
Cerberus Capital Management LP.

Focus is proposing to pay less than the quoted market value
of the so-called mezzanine debt, which ranks behind more senior
loans for repayment in the event of a default. The 9.375 percent
mezzanine notes due in 2015 were quoted at 45 pence on the pound
today by broker Aston Bond SA on Bloomberg.


Read more at Bloomberg Bonds News

Futures signal lower open on rates; Lehman up

(Reuters) - The yield on benchmark 10-year Treasury notes rose to 5.19 percent. Analysts say a decisive break above 5.15 percent could spook investors into selling stocks. Bond yields move inversely to prices.




"The move in yields is being used as an excuse for the pullback, but if you look at the fundamentals it will still make sense to buy stocks on weakness here," said Michael Darda, chief economist at MKM Partners LLC in Greenwich, Connecticut.


Read more at Reuters.com Business News

Treasuries Little Changed Before First-Quarter Worker Productivity Report

(Bloomberg) -- Treasuries were little changed before
a report that is forecast to show U.S. worker productivity last
quarter increased less than previously estimated.

The yield on the benchmark 10-year note was little changed
at 4.99 percent as of 8:07 a.m. in New York, according to bond
broker Cantor Fitzgerald LP. The price of the 4 1/2 percent
security due in May 2017 was unchanged at 96 6/32. Bond yields
move inversely to prices.


Read more at Bloomberg Bonds News

Treasuries Are Little Changed as Fed Forecasts Moderate Pace of Spending

(Bloomberg) -- U.S. Treasuries were little changed
after minutes from the Federal Reserve's most recent meeting
revealed that policy makers forecast that consumer spending will
grow at a ``more moderate pace.''

The yield on the benchmark 10-year note fell 2 basis points,
or 0.02 percentage point, to 4.86 percent at 2:080 p.m. in New
York, according to bond broker Cantor Fitzgerald LP. The price of
the 4 1/2 percent security due May 2017 gained 1/8, or $1.25 per
$1,000 face amount, to 97 1/8. Bond yields move inversely to
prices.


Read more at Bloomberg Bonds News

UPDATE 1-Venezuela to issue Southern Bond for up to $1 bln

(Reuters) - Venezuela has issued a total of $2.5 billion in Southern
Bonds since last year. The debt is a mix of Argentine and
Venezuelan paper, part of President Hugo Chavez's efforts to
boost economic ties with other Latin American countries.




Finance Minister Rodrigo Cabezas told reporters, "With
Argentina, the process is in discussion," saying it will be
from $500 million to $1 billion.


Read more at Reuters.com Bonds News

Japan's Government Bonds Advance as Yields Near One-Month High Lure Buyers

(Bloomberg) -- Japan's 10-year government bonds rose,
ending a two-day slide, on speculation yields near the highest
in a month will attract investors.

Bonds maturing in 10 years or more handed investors a
higher return than shorter-dated debt so far in 2007, according
to an index compiled by Merrill Lynch & Co. Japanese bonds also
gained after U.S. Treasuries rose for the first time in seven
days.


Read more at Bloomberg Bonds News