Top Interest Rate Headlines 05-17-11: Investors Return To US Municipal Bonds

Investors return to US municipal bonds
By Nicole Bullock, FT.com
Yields on US municipal bonds have fallen back to levels last seen in autumn when investors began stampeding out of the market, as concerns about mass defaults recede.While some states and cities struggle, investors have come to believe that warnings of catastrophic, widespread de­f­aults were overblown, dra­w­ing buyers to municipal bonds at a time when new bonds sales have dried up.
http://jlne.ws/ieqSbn

Southeast housing update: Polls show existing home sales softened in April
Federal Reserve Bank of Atlanta
As noted in Atlanta Fed President Dennis Lockhart's speech last week, "The housing sector impacts economic growth in two basic ways—one direct and one indirect." Because of its importance we continue to closely monitor developments in our region.
http://jlne.ws/mgvgA0

Female IMF employee wrote letter warning about IMF chief's behavior 3 years ago
Article by: CHRIS HAWLEY, Associated Press
The hotel maid accusing IMF chief Dominique Strauss-Kahn of trying to rape her as she went to clean his suite is telling the truth, has "no agenda" and did not know even know who he was until after the fact, her lawyer said Tuesday.
http://jlne.ws/mvglq3

PIMCO's El-Erian says doesn't want IMF chief job 
Reuters
PIMCO's Mohamed El-Erian, the chief executive of the world's largest bond fund, said on Tuesday he wouldn't want to head the International Monetary Fund if its managing director, Dominique Strauss-Khan, resigns over sexual assault charges.http://jlne.ws/my5nEh


US factory output falls for the first time in 10 months
BBC
US factories produced fewer goods for the first time in 10 months, driven mainly by a slump in vehicle production as a result of a shortage in parts from Japan.
http://jlne.ws/lfcm5q

MEXDER LAUNCHES NEW FUTURES CONTRACTS ON THE 5 AND 30 YEAR BOND (M5 AND M30)
As from May 16, 2011 MexDer will be listing Futures Contracts on the 30-Year Fixed Interest Rate Government Bonds (M30). As from May 16, 2011 MexDer will be listing Futures Contracts on the 5-Year Fixed Interest Rate Government Bonds (M5).
http://jlne.ws/lzuqBr

Construction of new homes falls in April Economic Report
By Jeffry Bartash, MarketWatch
Builders started construction on fewer new homes in April while permits also fell, reflecting no sign of a rebound in the battered U.S. housing market.
http://jlne.ws/m5BBSq

Citigroup Hires Emerging-Market Bond Analyst Eric Ollom From Jefferies
By Drew Benson and Veronica Navarro, Bloomberg
Citigroup Inc. (C) hired Eric Ollom as an emerging-markets debt strategist, luring him away from Jefferies & Co. Ollom, 48, will begin working for Citigroup in late June, bank spokesman Anthony Ingham wrote in an e-mail from New York. Tom Tarrant, a spokesman at Jefferies, declined to comment.
http://jlne.ws/itZKR3

How Well Do You Know Your Central Bankers?
Bloomberg BusinessWeek
Investors pick apart the minutes of central bank meetings and the speeches of central bankers for clues about rates. See if you can match these phrases with the banks and bankers that produced them.
http://jlne.ws/mOb6Y1

EU opens way for possible Greek debt restructuring
By Jan Strupczewski and Daniel Flynn, Reuters
Greece may have to restructure its debts, the euro zone's chief financial official acknowledged for the first time on Tuesday, a move which could blow Europe's sovereign debt crisis wide open again.
http://jlne.ws/jbLc6F

Mohamed El-Erian: The Odds Of A Greek Default Just Shot Up Due To Strauss-Kahn
By Joe Weisenthal, Business Insider
Mohamed El-Erian was on Bloomberg TV today discussing the sovereign debt, Strauss-Kahn, and Greece. By far the most important angle is that he thinks the DSK arrest could really have a serious impact on the situation in Europe.
http://jlne.ws/mNRcTD

Strauss-Kahn faces pressure to quit
By Joshua Chaffin in Brussels and Peggy Hollinger, FT.com
Pressure is mounting on Dominique Strauss-Kahn to resign after being remanded in custody for alleged sexual assault of a New York hotel maid, with some European finance ministers distancing themselves from the head of the International Monetary Fund. Maria Fekter, Austria’s finance minister suggested on Tuesday that Mr Strauss-Kahn, who was a leading contender to challenge Nicolas Sarkozy for the French presidency next year, consider stepping down to avoid damaging the IMF.
http://jlne.ws/jnBhuo

Pressure rises against IMF chief held at notorious NYC jail on attempted rape charge
Jennifer Peltz, The Canadian Press
Pressure built Tuesday for Dominique Strauss-Kahn to consider resigning as chief of the International Monetary Fund after he was charged with trying to rape a maid at a New York hotel. Strauss-Kahn spent the night at the infamous Rikers Island, a 400-acre penal complex, after being denied bail Monday. Prosecutors had warned the wealthy banker might flee to France and put himself beyond the reach of U.S. law like the filmmaker Roman Polanski.
http://jlne.ws/lBGXlV

Euro-zone ministers back Draghi for ECB head
By Polya Lesova, MarketWatch
Euro-zone finance ministers have announced their support for Italy’s Mario Draghi to become the next president of the European Central Bank.
http://jlne.ws/m2exfW