Republic of Kazakhstan -- Concluding Statement of the October 2009 IMF Mission Oct 30, 2009
While the use of savings in the oil fund for mitigating the crisis was appropriate, the medium-term budget should limit the reliance on oil revenues and allow the issuance of government securities. These securities would offer investment alternatives to market participants and provide a benchmark for the transaction of other domestic assets. (IMF News)
* The summit of low expectations Oct 30, 2009
The Chinese acknowledge that they enabled the US to borrow and spend beyond their means by parking Chinas massive foreign reserves in US government securities, but they refuse to accept that this was the root cause of the crisis. To the Chinese, as well as to others, it is obvious that the main cause of the crisis was the US flawed financial system. (Taipei Times, Taiwan -- World)
Inflation rises 1.5% on costlier food items Oct 29, 2009
The apex bank had raised Statutory Liquidity Ratio (SLR), the amount of deposits that banks are to keep in government securities, cash and gold, by one percentage point to 25 per cent.. Topics. (India Times, India)
Fed Is Ending Treasury Purchases That Held Down Yields, Stabilized Housing Oct 29, 2009
The Feds purchases likely restrained rates from rising faster during the April through June period when 10-year notes went to about 4 percent, said , chief fixed- income rates strategist in New York at Cantor Fitzgerald LP, one of the 18 primary dealers of U.S. government securities that trade with the Fed. The purchases were the first of U.S. Treasuries by the central bank to keep borrowing costs low since the 1960s. (Bloomberg -- US)
* Is stimulus still necessary? Oct 28, 2009
By buying government securities, the central bank injects cash into the banking system. This is intended to stimulate private spending by bringing down the rate of interest at which banks lend to their customers. (Taipei Times, Taiwan -- World)
Bond yields ease on RBI move Oct 28, 2009
MUMBAI: Government bond yields eased on Wednesday supported by the Reserve Bank of India's decision on Tuesday to raise the proportion of deposits banks have to hold in approved government securities. On Tuesday, the Reserve Bank of India (RBI) raised the Statutory Liquidity Ratio (SLR) or the proportion of deposits banks h 00004000 ave to hold in approved government securities by 100 basis points to 25 per cent while keeping all other rates unchanged ... "Although banks are already maintaining... (India Times)
ICICI sees minor impact from RBI steps Oct 28, 2009
The Reserve Bank also raised the statutory liquidity ratio by 1 percent, reversing a cut made last November, although banks already hold government securities in excess of the requirement. The RBI, which left key interest rates unchanged at the review, said there were signs of excess liquidity feeding into asset prices. (India Times)
Interest rates set to rise, signals RBI Oct 28, 2009
The central bank also reversed its earlier decision to reduce the minimum required investment by banks in government securities from 25% to 24% of deposits ... As most banks have already invested more than 25% in government securities, this decision will not have an immediate impact on the availability of funds, but these measures clearly indicate the RBI's intent to discontinue the accommodative monetary policy. (India Times, India)
RBI leaves key rates unchanged Oct 27, 2009
Barring the hike in Statutory Liquidity Ratio, the deposits that commercial banks are to park in government securities, the central bank left other key policy rates and ratios unchanged. Although the one percentage point hike in SLR could suck up over Rs 30,000 crore from the system, the average SLR of banks is already at 27. (India Times)
Geithner Making Bills-to-Bonds Yield Gap Unprecedented by Increasing Sales Oct 26, 2009
U.S. government securities due in 10 years or more are on pace to lose 12. 7 percent in 2009, compared with a loss of 1. (Bloomberg -- US)
Malaysian Bond Market Oct 24, 2009
That said, we still hold the view that the current environment favours private debt securities (PDS) more than Malaysian Government Securities (MGS). Other than supply, we may see rising interest-rate pressure next year once regional rate-hikes pick up steam. (The Star Online, Malaysia -- Business)
Social Security: Every politicians toy? Oct 22, 2009
Make the argument, if you must, that the Treasuries sitting in the trust fund s file cabinets are not like the super-safe government securities traded around the world that the Treasury doesn t have to make good on them. The truth is that these special Treasury bonds are different, but they still cannot be defaulted upon without a vote by Congress. (Paragould Daily Press, AR)
Don't bank blindly on MF plans: Analysts Oct 19, 2009
Even government securities outperformed for a while, he adds. According to Krishnan Sitaraman, Director, Crisil FundServices, all sectoral indices analysed gave positive returns in September with the banking sector topping gains with an 18% percent monthly rise. (India Times, India -- Intl Business)
Renewed risk appetite draws investors, companies to debt market Oct 14, 2009
There are clear signs of momentum shifting to PDS, judging from the rising PDS volume against a declining MGS (Malaysian Government Securities) volume, said Fu Yew Sun, AmResearch credit research director. He expects the trend to be sustained as many supportive factors are at play, including valuation, supply-demand, Mlysts, etc. (The Star Online, Malaysia -- Business)
The U.S. Debt Ceiling: Shrinking Headroom Oct 13, 2009
One possibility is to withdraw government debt holdings of the Government Securities Investment Fund (G Fund), a defined contribution plan for federal employees ... On Dec. 31, 2008, $113 billion of government securities were in the G Fund ... Another potential source of headroom would be suspending payments to and redeeming government securities held by the Civil Service Retirement and Disability Fund. (BusinessWeek)
FMPs promise more bang for buck Oct 13, 2009
FMPs invest in government securities, money market instruments and corporate bonds. The product was popular, as mutual funds were then allowed to indicate returns that were locked-in at the start of the plan. (India Times)
ICICI Pru EPFO's top fund manager Oct 11, 2009
5 per cent for depositors since 2005-06 because of low return of government securities, schemes and instruments. Before that it remained 9. (India Times)
Begich gave rosy picture to Assembly Oct 11, 2009
On page two, it notes that this portfolio is invested in fixed-income products, bonds, government securities and the like. "From June 2007 through August 2008," the mayor's memo says, the portfolio "earned a return of 4.13 percent." That trailed an industry benchmark the city uses to assess how well its investments are doing. (Anchorage Daily News)
Young investor with stable job can withstand more risk in Thrift Savings Plan Oct 10, 2009
There are five funds within the Thrift Savings Plan in which to invest: (1) a government securities fund; (2) a fixed-income fund that duplicates Lehman Bros. Bond Index fund; (3) a common stock index fund that duplicates the S&P 500 index; (4) a small-cap index fund that duplicates the Dow Jones Wilshire 4500; and (5) an international stock index fund that is compiled of stocks of 21 countries. (Boston Globe)
Rising interbank deals hint liquidity Oct 10, 2009
There is a fear that a withdrawal of the expansionary monetary policy is around the corner, said Golaka C Nath, senior V-P at Clearing Corporation of India the firm that settles all government securities transactions in India. A new half year has just begun and banks want to be well armed at a time when the economy looks set for recovery, he added. (India Times)
PAAB to sell RM2bil bonds Oct 9, 2009
3 percentage point more than similar-maturity Malaysian government securities, according to the e-mail. Notes of longer maturity might be priced at 0. (The Star Online, Malaysia -- Business)
Treasuries Decline, Set for Weekly Drop, After Bernanke Signals Tightening Oct 9, 2009
The real yield, or the difference between rates on government securities and inflation, for 30-year bonds is 5. 61 percentage points today, compared with an average of 3. (Bloomberg -- US)
Value in stability Oct 7, 2009
There are also specialist fixed-interest brokers, such as FIIG Securities and Curve Securities, who can advise clients on a range of government securities, corporate bonds, hybrids and term deposits. As to whether fixed-interest assets such as government bonds represent a good investment, they have always played a role as a counterbalance to the risk of equities in portfolios. (Sydney Morning Herald -- Business)
Obama's permanent depression Oct 6, 2009
The crippled banking system borrows at an interest rate of zero and buys government securities. And the economy shrivels up and dies. (Asia Times Online)
T. Rowe exec tapped for U.S. Treasury post Oct 6, 2009
If confirmed by the Senate, Miller, 54, would advise Treasury Secretary Timothy Geithner on policy issues including the sale of U.S. government securities and federal, state and local finance matters. James Kennedy, T. Rowe Price s president and CEO, praised Miller s integrity, dedication to clients and investment excellence. (Baltimore Business Journal, MD)
'Allow EPFO to invest funds in markets' Oct 4, 2009
60 lakh crore has been paying 8 per cent interest to its subscribers, partly from its reserves and hardly earning reasonable returns on its investments in government securities and bonds to sustain its operations effectively and profitably for future, it said. It said since the RBI and SEBI jointly keep strong watch on stock market fluctuations, it is highly unlikely that investors especially like EPFO could loose money in indices linked equities. (India Times)
Sensex set for crackling Diwali, buying by FIIs at whopping $4bn in Sep Oct 1, 2009
Dealers said RBIs decision to keep government borrowing within the limits indicated at the start of the fiscal year boosted confidence that the benchmark yield on 10-year government securities, which determines the interest rate in the economy, might not rise much. While SBI ended 5% higher at Rs 2,196, it also scaled a new 52-week high level during the day. (India Times)
Asian Corporate Bond Spreads to `Grind' Down on Rally, Credit Suisse Says Sep 25, 2009
Rising confidence in corporate earnings has cut the extra yield investors demand to hold Asian company notes rather than similar-maturity government securities to the lowest since July 2008, according to JPMorgan Chase & Co.s. The spread narrowed to 380 basis points from a record 953 basis points on Oct. 29, and investors received a 21 percent return from the securities this year, JPMorgan data show. (Bloomberg -- Asia)
Forget Uncle Sam, what we need is another Churchill Sep 25, 2009
Chimerica'' dependence means Chinese export receipts become Chinese savings in US dollar assets such as government securities. But you never put all your eggs in one basket, unless of course it is as good as gold. (Sydney Morning Herald -- Business)
Richard Rahn: The Growing Debt Bomb Sep 23, 2009
Now suppose you are not an individual bondholder but the Chinese government official responsible for the Chinese economy, and you know your government holds about $1 trillion in U.S. government securities ... The Chinese are not stupid, and they have been vocal in saying they are concerned that U.S. policies will lead to a further fall in the dollar and higher rates of inflation, both of which undermine the value of their investment in U.S. government securities. (Newsmax)
Bankruptcy ahead Sep 22, 2009
It is, however, worth noting that bank holdings of government securities expanded at a 16. 2% pace during the quarter to $941 billion. (Asia Times Online)
State borrowings set to break records Sep 22, 2009
A rise in the yield premium at which debt from state government quotes over the central government securities, may infact raise their appeal for investors, add analysts ... Investors, mainly nationalised banks and mutual funds, buy these securities lured by SDLs quoting at a premium to central government securities (that is at a lower cost) ... He explains that its the trend in central government securities that influences SDL yields and not the other way round. (India Times)
Bankers urge RBI to unwind slowly Sep 19, 2009
The bank chiefs also urged RBI to hike the statutory liquidity requirement and the share of government securities that can be parked in the held-to-maturity (HTM) basket. As of now, banks have to invest 24% of their deposits (demand and time liability) in government securities. (India Times)
Norms for repo in corp bonds ready Sep 18, 2009
At present, repo operations are allowed only in government securities. Besides commercial banks, non-banking financial companies (NBFCs), financial institutions (like Exim Bank, NABARD, NHB and SIDBI), insurance companies, mutual funds, housing finance companies and RBI-approved primary dealers will be allowed to undertake repo transactions in corporate debts. (India Times)
Philippines Sells a Record $1.6 Billion of Retail Bonds; Peso Strengthens Sep 16, 2009
We now have the flexibility to reduce sales of government securities and to shift our borrowings to longer tenors as part of liability management, Deputy Treasurer said in Cebu. To contact the reporters on this story: Clarissa Batino in Cebu at ; Francisco Alcuaz Jr. in Manila at. (Bloomberg -- Asia)
Australian Banks May Engage in Bond-Buying Spree to Meet Liquidity Levels Sep 16, 2009
If banks were to hold 5 percent of their total domestic assets as liquid government securities, as they did in the mid 1990s, this would imply they need to own A$122 billion of government bonds and treasury notes ... The APRA guidelines imply a massive uplift in bank demand for government securities, Jolly said. (Bloomberg -- Australia & New Zealand)
Bankers may seek changes in bond portfolio valuation Sep 15, 2009
Bankers are likely to make a strong case to increase the portion of government securities that can be parked in the held to maturity (HTM) category. As of now, banks have to invest 24% of their deposits in government securities ... The other two baskets in which banks park government securities is held for trading (HFT) and available for sale (AFS). (India Times)
Japan to Continue Pace of Government Securities Buybacks, Ministry Says Sep 12, 2009
Sept. 11 (Bloomberg) -- Japan, the worlds biggest borrower, will continue its aggressive buyback stance of government securities, an official said after a meeting with the nations 23 primary dealers. Some dealers asked the Ministry of Finance to continue buybacks of 10-year inflation-linked bonds and 15-year floating rate bonds, according to the official, who gave the briefing on the condition of anonymity. (Bloomberg -- Japan)
Cash downthe drain Sep 11, 2009
011 trillion in US government securities. Yikes. (Asia Times Online)
Geithner Wants Bankers' Pay Equity Advances That Can Be `Clawed Back' Sep 11, 2009
Taking questions from the audience, he also said he was very confident will keep buying U.S. government securities and that investors would maintain confidence in the U.S. economy. President named , a Washington lawyer known for mediating disputes over compensation for damages from the Sept. 11 attacks, to be special master of executive pay policy. (Bloomberg -- US)
Prasarana offers RM2bil Islamic bonds Sep 10, 2009
58 percentage point more than Malaysian government securities (MGS) of similar maturity, according to the report that cited an e-mail to investors ... Malaysian corporate bonds were expected to outperform government securities in the next six months as a revival in earnings and initial public offerings improved company finances, AmBank Bhd general manager of credit research and strategy Fu Yew Sun told Bloomberg yesterday ... In 2008, however, government securities gave 8% in returns,... (The Star Online, Malaysia -- Business)
Money market guarantee program expiring Sep 10, 2009
Almost all funds did initially, although some that invest only in U.S. government securities later dropped out. The guarantee covered balances that were in participating taxable and tax-free money funds when the program started Sept. 19. (San Francisco Chronicle -- Business)
Fixed Income Investments - tread with care Sep 9, 2009
Jaya Vakil, a retired teacher is wondering how could she lose money in a mutual fund investing in government securities ... She is not alone, there are many who opted to put their money in funds investing in government securities looking at their handsome performance in last quarter of 2008 when interest rates fell ... Those who look at the government securities as a risk-free investment instrument must understand the inverse relationship between the yields and the prices of bonds, says a... (India Times)
Canadian Currency Weakens After Earlier Touching Strongest Level in Month Sep 9, 2009
Canadian government securities lost investors 1. 4 percent this year, according to a Merrill Lynch & Co. index. (Bloomberg -- Canada)
Clunker remorse Sep 9, 2009
Not "getting along" as good as the federal government, however, which can (and did) just decide on a plan to sell a couple of trillions of dollars in new debt, whereupon the Federal Reserve will create the money, like when the Fed bought $30 billion of US government securities, directly increasing the money supply by the amount of the new debt. Now THAT'S what I call "getting along pretty good!" Hahaha. (Asia Times Online)
Sleep-At-Night-Money Lost in Lehman Lesson Missed With Bent's $63 Billion Sep 9, 2009
All funds that didnt invest exclusively in U.S. government securities and needed to sell assets to meet client redemptions effectively broke the buck, Winters said. If you had to liquidate the portfolio there and then, you wouldnt have had enough assets to redeem at $1 a share, he said. (Bloomberg)
Missing Lehman Lesson of Global Shakeout Means Too Big Banks Prone to Fail Sep 8, 2009
Fox, who is also treasurer of Pleasanton, California-based the third-largest U.S. supermarket chain, said in an interview that nervous CEOs and boards ordered some members of his association to restrict purchases to money market funds that bought only government securities. Corporate treasurers use money market funds to set aside cash in the same way individuals might use a bank account. (Bloomberg -- Germany)
Uganda: Offshore Investors Help Shore-Up Shilling Sep 7, 2009
Offshore investors that had previously exited government securities market due to the global economic recession have made a come-back ... "There's definitely going to be more action in government securities ...rates will definitely crash," a fixed-income dealer said ... Kaboyo said scheduled auctions of government securities would be unaffected by the policy. (allAfrica.com)
Risk-averse investor Sep 6, 2009
Debt mutual funds invest in different kinds of debt instruments such as bonds, debentures, government securities and money market securities with the objective of providing stable returns to investors at a relatively low risk. In the current times, investing in shortterm debt funds, liquid and liquid plus schemes, and floating rate funds for a short to medium term is advisable. (India Times)
RBI lets bond houses borrow more Sep 5, 2009
There are only eight standalone PDs in the country, 14 years after they were first introduced to strengthen the infrastructure in the government securities market. These include; ICICI Securities PD, STCI, BankAm-Merrill Lynch and IDBI Gilts. (India Times)
EPF investment income up 17% on equities Sep 4, 2009
According to the EPF, its investments in Malaysian Government Securities (MGS), another major contributor to its total investment income, rose marginally by RM830,000 to RM1. 11bil compared with the preceding quarter. (The Star Online, Malaysia -- Business)
Bonds Advance as Stocks Slide; Five-Year Yield Drops to Lowest Since 2005 Sep 2, 2009
Demand for government securities also increased before a report this week economists said will show Japanese companies cut spending for a ninth quarter. The bearish bias in stocks will support the Japanese government bond market, said , chief market analyst in Tokyo at Mizuho Investors Securities Co., a unit of the nations second-largest bank. (Bloomberg -- Japan)
FACTS, FIGURES AND FANTASIES Sep 1, 2009
Maybe Fed chief Ben Bernanke has been buying out some foreigners' positions in US government securities or derivatives, which would show up on the Fed's books. The Fed has already been in the market directly buying Washington's junk bonds in what is euphemistically known as "quantitative easing.". (New York Post -- Business)
Bond Market Rejects Bernanke Recovery as 10% Jobless Rate Buoys Two-Years Sep 1, 2009
Bank of government securities and debt of mortgage companies in Washington and McLean, Virginia-based increased to a record $1. 37 trillion in the week ended Aug. 12, from $1. (Bloomberg)
Hong Kong's $452 Million Bond Sale Will Lure Investors, JF Asset, ING Say Sep 1, 2009
Hong Kongs $88 billion market is comprised of 23 percent government securities and 77 percent corporate bonds, according to the Asian Development Bank. The ratio of Hong Kong dollar loans to deposits at the citys banks was at 70. (Bloomberg -- Asia)
NSE kicks off trading in interest rate futures Sep 1, 2009
The Indian version of IRF is based on 10-year notional government securities with an interest rate of 7% per annum. The maximum duration of an IRF contract could be of 12 months and settlement will be every three months--March, June, September and December. (India Times, India -- Intl Business)
Exchange-traded contracts are preferred the world over Aug 31, 2009
The product proposed by the joint committee of RBI and Sebi is an IRF on a 10-year notional 7% coupon bond and the eligible bond bucket, as proposed by NSE, comprises 11 government securities with 8-12-year residual maturity, and this includes the current liquid 10-year benchmark. The deliverable basket includes securities with a minimum outstanding of Rs 10,000 crore. (India Times)
Recovery? Bond traders eye 10% unemployment Aug 31, 2009
Bank holdings of government securities and debt of mortgage companies Fannie Mae in Washington and McLean, Virginia-based Freddie Mac increased to a record $US1. 37 trillion in the week ended August 12, from $US1. (Sydney Morning Herald -- Business)
Dump Outperforming Bonds of Rio Tinto, Seek Out Undervalued Debt, BNP Says Aug 29, 2009
The following is a table of Williamss Top Picks for September 2009 sorted by yield premiums over government securities. The amounts are in millions of U.S. dollars and the spreads are in basis points. (Bloomberg -- Asia)
Uganda: Uganda's Trade Surplus Hits $19m Aug 28, 2009
"There's definitely going to be more action in government securities ... rates will definitely crash," a fixed-income dealer said ... Kaboyo said that scheduled auctions of government securities would be unaffected by the policy. (allAfrica.com)
Treasuries Advance Before Report That May Show GDP Shrank at Faster Pace Aug 27, 2009
Bank of government securities and debt of mortgage companies in Washington and McLean, Virginia-based increased to $1. 37 trillion in the week ended Aug. 12, the most since the Federal Reserve began tracking the number in 1990. (Bloomberg -- US)
Gross financing up in July on high loan disbursement Aug 27, 2009
5bil via the issuance of a five-year Government Investment Issues and the re-opening of a 10-year Malaysian Government Securities. Gross funds raised by the private sector via issuances of PDS totalled RM3. (The Star Online, Malaysia -- Business)
Australian, N.Z Dollar Climb on Stocks, Demand for Higher-Yielding Assets Aug 24, 2009
Demand for Australias dollar also increased after the nation last week decided to remove interest withholding tax on federal government securities, making the assets more attractive to investors. The data is getting positive, the world is out of recession and growth is back on the table, said , head of currency trading at ANZ National Bank Ltd. in Wellington. (Bloomberg -- Australia & New Zealand)
Text of his comments Aug 22, 2009
In March, the Bank of England announced that it would purchase government securities, commercial paper, and corporate bonds, and the Swiss National Bank announced that it would purchase corporate bonds and foreign currency. For its part, the ECB injected more than 400 billion of one-year funds in a single auction in late June. (MSNBC -- Business)
HwangDBS IM remains upbeat Aug 21, 2009
Quality corporate debt papers are still paying better returns than government securities, Chan said. The benchmark five-year Malaysia Government Securities is yielding at around 3. (The Star Online, Malaysia -- Business)
