Top Interest Rate Headlines 10-27-10: Treasury 5-Year Notes Go At 1.330% High Yield

Federal Funds Futures: When a Bet Is Not a Bet
By Howard Simons
Has any carnival barker ever drawn a crowd with, “Step right up and refloat your fixed-rate overnight index swaps!”? Probably not; traders are supposed to be risk takers, cool and calculating, skirting along the edge of the road and asking passersby for the telephone number for 1-800-GAMBLER.
http://jlne.ws/cqtn39 

Retail appetite helps Goldman sell $1.3bn in 50-year bonds 
Goldman Sachs sold $1.3bn in 50-year bonds, benefiting from the voracious appetite of retail investors for higher-yielding securities at a time of historically low interest rates. Goldman, which originally said it would sell $250m in 50-year debt, sold the bonds on Tuesday in lots of $25 to attract individual investors.
http://jlne.ws/aly8mX

Treasury 5-Year Notes Go At 1.330% High Yield 
By Gary Siegel, The Bond Buyer
The Treasury Department auctioned $35 billion of five-year notes, with a 1 1/4% coupon, a 1.330% high yield, a price of 99.614432http://jlne.ws/aUGqdj

Federal Funds Futures: When a Bet Is Not a Bet 
By Howard Simons, Minyanville
Has any carnival barker ever drawn a crowd with, “Step right up and refloat your fixed-rate overnight index swaps!”? Probably not; traders are supposed to be risk takers, cool and calculating, skirting along the edge of the road and asking passersby for the telephone number for 1-800-GAMBLER.http://jlne.ws/cqtn39

Tudor Says Yuan Gains Would Add More Jobs Than Fed Easing
By Saijel Kishan, Bloomberg
Paul Tudor Jones, founder of $11.5 billion hedge-fund firm Tudor Investment Corp., said a revaluation of China’s renminbi would do more to cut U.S. unemployment than asset purchases by the Federal Reserve.
http://jlne.ws/bIRTel

Bean explains why Bank forecasts failed 
By Daniel Pimlott, FT.com
The Bank of England could not have foreseen the depth of the recession, according to its deputy governor, because downturns following banking meltdowns are so unpredictable. Economists should treat such events the way seismologists approach earthquakes, said Charlie Bean, by remaining alert to a build-up of stresses and vulnerabilities.
http://jlne.ws/9ptB6T

Bill Gross, PIMCO | Investment Outlook - Run Turkey, Run 
They say a country gets the politicians it deserves or perhaps it deserves the politicians it gets. Whatever the order, America is next in line, and as we go to the polls in a few short days it’s incumbent upon a sleepy and befuddled electorate to at least ask ourselves, “What’s going on here?” Democrat or Republican, Elephant or Donkey, nothing much ever seems to change. Each party has shown it can add hundreds of billions of dollars to the national debt with little to show for it or move our military from one country to the next chasing phantoms instead of focusing on more serious problems back home. This isn’t a choice between chocolate and vanilla folks, it’s all rocky road: a few marshmallows to get you excited before the election, but with a lot of nuts to ruin the aftermath.http://jlne.ws/bfYYKc

Fannie Mae to sell new 3-yr and 5-yr notes in reopen
Reuters
Fannie Mae (FNMA.OB), the largest U.S. home funding company is planning to sell on Thursday new three-year benchmark notes and $1.0 billion of five-year benchmark notes in a reopening of an existing 1.625 percent issue, said a market source familiar with the transaction on Wednesday.
http://jlne.ws/9cog3l

Argentina credit default swaps spreads narrow
Reuters
Argentina's credit default swap spreads narrowed on Wednesday following news of the death of former Argentine president Nestor Kirchner, husband of current president Cristina Fernandez.http://jlne.ws/aGVH9b

Financial industry, regulators facing unprecedented rule-making task: SIFMA
News Investment Executive
Focus must be on safeguarding financial system without constraining economic growth and job creation
The financial industry and its regulators face an unprecedented task over the next few years, as they must write a wide range of important rules to implement regulatory reform, says the head on the U.S. securities industry trade association. Speaking to the National Economists Club on Tuesday, Tim Ryan, president and CEO of the U.S. Securities Industry and Financial Markets Association, said that the industry is facing a huge task as gets around to the detailed work of implementing the reforms passed by the U.S. Congress earlier this year.
http://jlne.ws/bWMWGo

U.S. Seeks to Shield Goldman Secrets
By SCOTT PATTERSON, WSJ.com
Goldman Sachs Group Inc. has always closely guarded the secrets of its lucrative high-speed trading system. Now the securities firm is getting a help from an unusual source: federal prosecutors.
http://jlne.ws/8Z6K20

SIFMA Says It's Not Looking to Roll Back Dodd-Frank Law
Finance Technology Network
A major financial services trade group said Tuesday it is not seeking to roll back key portions of the new U.S. financial reform law regardless of the outcome of the November elections.
http://jlne.ws/aHRfTY

Financial Overhaul Should Help Long-Term Growth, Paulson Says
By Margaret Collins, Bloomberg
The financial overhaul law passed earlier this year should provide greater long-term growth for the economy, former U.S. Treasury Secretary Henry Paulson said.
Bloomberg
http://jlne.ws/9kXXUR