TREASURIES-Bonds climb as tech shares hobble stocks

Reuters: [2008-05-19 22:26:00]

(Adds quotes, updates prices; changes byline)

* Bonds rise as stocks pare early gains

* Trading still range bound

* April leading indicators index higher than forecast

By Chris Reese

NEW YORK, May 19 (Reuters) - U.S. Treasury debt prices rose in thin trade volume on Monday as shares of technology companies, which had led a stocks surge through much of the day, abruptly turned lower.

The technology-laden NASDAQ Composite Index <.IXIC> turned negative on Monday afternoon after a computer chipmaker's warning about consumer spending hurt shares. The bond market reacted accordingly, turning higher as stocks pared gains to finish mixed.

"It has really been all about stocks today," said Michael Pond, Treasury strategist with Barclays Capital in New York, adding "(bonds) were down earlier because stocks were having a good day, but equities came off their highs and bonds turned around as well."

The benchmark 10-year Treasury note <US10YT=RR> traded 7/32 higher in price for a yield of 3.83 percent, from 3.85 percent late on Friday, while the 2-year note <US2YT=RR> traded 6/32 higher in price for a yield of 2.40 percent, from 2.46 percent.

"Equities have come off their highs: that is part of the reason why Treasuries have firmed," said Tony Crescenzi, chief bond market strategist with Miller, Tabak & Co. in New York.

Aside from the stock market action, bond investors had little else to guide them, and trading volume was well below average.

No major economic data is due this week and the only report scheduled for Monday, the Conference Board's index of leading economic indicators, came in slightly higher than forecast.

With the thin data calendar, bond yields are generally expected to remain relatively range-bound this week.

"Information is so two-sided now with respect to the fundamentals that it's more of a day-trade environment," said John Spinello, senior vice president and chief fixed-income technical strategist at Jefferies & Co in New York.

"When the market goes down, people buy. If we rally toward Friday's highs, they'll be prepared to sell," he said.

Spinello said sellers come in when the 10-year yield gets to 3.78 percent and buyers emerge when the yield rises to 3.90 percent or 3.91 percent.

Five-year notes <US5YT=RR> traded 6/32 higher in price for a yield of 3.09 percent from 3.13 percent late on Friday, while the 30-year bond <US30YT=RR> traded 6/32 higher for a yield of 4.57 percent from 4.58 percent. (Additional reporting by John Parry and Ellen Freilich; Editing by Dan Grebler) ((chris.reese@thomsonreuters.com; +1 646 223 6073; Reuters Messaging: chris.reese.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com) Keywords: MARKETS BONDS

-------MARKET SNAPSHOT AT 4:18 p.m. EDT (2018 GMT)------- 
June T-Bond <USM8>           116-23/32  (+08/32)          
June 10-Year note <TYM8>     115-15/32  (+08/32)          
                                       Change vs    Current 
                                          Nyk        yield 
Three-month bills<US3MT=RR>  1.835       (+0.04)     1.874 
Six-month bills  <US6MT=RR>  1.875       (+0.01)     1.919 
Two-year note <US2YT=RR>     99-15/32   (+04/32)     2.406 
Five-year note <US5YT=RR>    100-06/32  (+06/32)     3.085 
10-year note  <US10YT=RR>    100-12/32  (+06/32)     3.831 
30-year bond  <US30YT=RR>    96-26/32   (+04/32)     4.572 
    
----------------------------SWAP SPREADS--------------- 
      May 19 May 16 May 15 May 14 May 13 May 12 May 9 
2-YR  77.75  79.50  78.50  83.00  81.00  79.75  80.50 
3-YR  84.25  85.75  84.00  87.50  86.00  84.75  84.50 
5-YR  76.50  78.75  76.75  81.75  81.75  80.25  79.50 
10-YR 56.75  58.75  56.50  61.00  61.75  60.25  60.00 
30-YR 28.75  30.50  27.00  31.50  32.25  31.50  31.00 
Keywords: MARKETS BONDS  
    

TREASURIES-Treasuries firm as stocks pare gains

Reuters: [2008-05-19 20:12:00]

NEW YORK, May 19 (Reuters) - Treasury debt prices turned modestly higher on Monday as U.S. stocks pared some earlier gains, restoring luster to safe haven government bonds.

The benchmark 10-year Treasury note's <US10YT=RR> price, which moves inversely to its yield, rose 4/32 for a yield of 3.84 percent, versus 3.85 percent late Friday.

The Dow Jones industrial average <.DJI> traded off its earlier highs, up about 0.8 percent at 13,088 points.

(Reporting by John Parry; Editing by Chizu Nomiyama)

((John.Parry@thomsonreuters.com ; +1 646 223 6303; Reuters Messaging: john.parry.reuters.com@reuters.net )) Keywords: MARKETS BONDS

SNB's Hildebrand says crisis now in second half

Reuters: [2008-05-19 19:02:00]

ZURICH, May 19 (Reuters) - The global credit crisis has entered its "second half-time" and banks looked set to weather further aftershocks due to their capital measures, Swiss National Bank Vice-Chairman Philipp Hildebrand said on Monday.

"We are in the second half-time," Hildebrand said in a panel discussion at Zurich's Efficiency Club, using a football analogy.

Hildebrand added that forecasts for the coming years were extremely hard given the high uncertainties.

"The important thing is that banks are now in a position to absorb aftershocks (of the crisis)," Hildebrand said, pointing to the banks' measures to bolster their capital base.

(Reporting by Sven Egenter and Douwe Miedema)

((sven-markus.egenter@reuters.com; +41 58 306 7351; Reuters Messaging: sven-markus.egenter.reuters.com@reuters.net))

Keywords: UBS/HILDEBRAND

TREASURIES-Prices flat to lower as stocks climb

Reuters: [2008-05-19 18:47:00]

(Updates prices, adds comment)

* Bonds flat to lower as stocks advance

* Trading still rangebound

* April leading indicators index higher than forecast

By Ellen Freilich

NEW YORK, May 19 (Reuters) - U.S. Treasury debt prices erased early gains on Monday and fell into the minus column as investors moved into stocks after an economic forecasting gauge suggested that even though the U.S. economy was weak, it has so far averted recession.

In the stock market, investors bought technology shares on hopes that business spending will hold up and near-record oil prices lifted shares of energy firms.

"Both the stock and the bond markets are reacting to better economic news of recent vintage and may be reassessing the severity of any prospective economic contraction that we might see," said David Resler, chief economist at Nomura Securities International in New York.

While bonds suffered as investors showed a preference for stocks, they still traded in well-established ranges.

The benchmark 10-year Treasury note<US10YT=RR> , up 11/32 early in the day, was down 7/32, its yield rising to 3.88 percent from 3.85 percent late on Friday. The 3.90 percent to 3.92 percent level in 10-year Treasury yields has frequently drawn in buyers.

Two-year Treasury notes <US2YT=RR> were unchanged, yielding 2.46 percent.

"Some fairly key levels have been holding on a closing basis last week," said John Canavan, analyst at Stone and McCarthy Research Associates. "The 2.5 percent yield on the two-year note has held on a closing basis despite repeated attempts to penetrate it since late April," he said.

On 10-year yields, "the 3.91 percent area has held since the beginning of the year and since the beginning of last November the 4.66 percent yield area has held on the 30-year bond despite repeated attempts to penetrate it," Canavan said.

Aside from the stock market action, bond investors had little else to guide them. No major economic data is due this week and the only report scheduled for Monday, the Conference Board's index of leading economic indicators, came in slightly higher than forecast.

"Information is so two-sided now with respect to the fundamentals that it's more of a day trade environment," said John Spinello, senior vice president and chief fixed-income technical strategist at Jefferies & Co in New York. "When the market goes down, people buy. If we rally toward Friday's highs, they'll be prepared to sell."

Spinello said sellers come in when the 10-year yield gets to 3.78 percent and buyers emerge when the yield rises to 3.90 percent or 3.91 percent. (Editing by Dan Grebler) ((Ellen.Freilich@reuters.com ; +1 646 223 6309; Reuters Messaging: ellen.freilich.reuters.com@reuters.net )) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com) Keywords: MARKETS BONDS

    ---------MARKET SNAPSHOT AT noon (1600 GMT) ---------- 
June T-Bond <USM8>           116-03/32   (-12/32) 
June 10-Year note <TYM8>     115-02/32   (-05/32) 
                                        Change vs  Current 
                          previous New York close    yield 
Three-month bills <US3MT=RR>     1.850   (+0.050)    1.884 
Six-month bills <US6MT=RR>       1.895   (+0.025)    1.939 
Two-year note <US2YT=RR>      99-11/32   ( unch )    2.469 
Five-year note <US5YT=RR>     99-30/32   (-02/32)    3.139 
10-year note <US10YT=RR>      99-31/32   (-06/32)    3.875 
30-year bond <US30YT=RR>      96-05/32   (-17/32)    4.610 
Keywords: MARKETS BONDS 
Keywords: MARKETS BONDS  
    

Romanian leu rises to 2-week high vs euro

Reuters: [2008-05-19 15:31:00]

    BUCHAREST, May 19 (Reuters) - The Romanian leu gained 0.3 
percent to reach a two-week high against the euro on Monday, 
tracking improved risk appetite towards emerging markets, 
dealers said. 
    Economists say expectations are rising that of an end to the 
credit crisis that has gripped markets since the second half of 
2007, while soaring commodities prices are bolstering resource 
plays in several emerging economies. 
    The leu has weakened steeply to the euro from a five-year 
high hit in the middle of last year as global financial turmoil 
fanned worries about Romania's vast current account deficit. 
    "There is an improvement on the region. The leu firms more 
rapidly because the Romanian market is smaller," said one dealer 
with a foreign bank in Bucharest. 
    By 1300 GMT, the leu rose as high as 3.6213 per euro 
<EURRON=>, its highest level since May 6, compared with Friday's 
close of 3.6335. 
    Overnight rates lingered at around 9.53/10.03 percent. 
 (Reporting by Radu Marinas; Editing by David Christian-Edwards) 
 ((radu.marinas@reuters.com ; +40 21 315 8320; Reuters 
Messaging: radu.marinas.reuters.com@reuters.net)) 
 --------------- MARKET SNAPSHOT AT 1310 GMT ---------------- 
 Leu/euro <EURRON=> at 3.6240 bid vs 3.6335 on Friday. 
 Leu/dollar <RON=>  at 2.3242 bid vs 2.3379. 
 -------------RELATED NEWS (double click to access) --------- 
 Romania Market Debt     [RO-DBT]   Romanian forex      [RO-FRX] 
 Romania Market Report   [RON/] 
 Emerging Market Debt    [EMRG/DBT] Emerging forex    [EMRG/FRX] 
 All Emerging Markets news [EMRG]   CEE indicators  [CONV/DIARY] 
 All East Europe News       [EEU]   E.Europe equities     [.CEE] 
 TOP NEWS -- Emerging markets   [TOP/EMRG] 
 TOP NEWS -- Convergence watch  [TOP/EAST] 
 Romanian indicators        [RO/ECI] 
 Main page of Reuters poll  <RO/POLL1> 
 --------------------LIVE PRICES & DATA------------------------- 
 RON Spot against EUR  <EURRON=>  Against USD             <RON=> 
                                  C.Europe Bonds      <CEEBONDS> 
 RON indicative rates <RONFIX=>   RON Cross Rates       <RONX1=> 
 RON Deposits Rates  <RONDEPO=>   Romanian Central Bank  <BNR01> 
 Romanian Central bank rates <FXRP> 
 --------------------------------------------------------------- 
  Keywords: MARKETS ROMANIA/LEU