Top Interest Rate Headlines 7-6-2011: China Raises Interest Rates

China Raises Interest Rates
Customers at a supermarket in Shanghai in May. Consumer prices rose 5.5 percent in the month from the same period last year.
By BETTINA WASSENER, NYTimes.com  July 6, 2011
HONG KONG — China on Wednesday raised interest rates for the fifth time in nine months, the latest in a series of moves aimed at cooling the pace of economic growth and the steep price rises that have accompanied expansion.
http://jlne.ws/ngG2l6

USE to enter interest rate futures
BS Reporter / Mumbai July 07, 2011
The United Stock Exchange (USE) will enter the interest rate futures (IRFs) trading segment. The exchange will soon apply to the Securities and Exchange Board of India (Sebi) for permission, a senior USE official told Business Standard.
At present, the USE is engaged in currency trading and competes with the National Stock Exchange (NSE) and MCX Stock Exchange (MCX SX). It has a 20 per cent market share in currency trading.
http://jlne.ws/q51jbL

Wall Street Rally May Spell Pullback for U.S. Stocks
Advanced Trading By Reuters    
July 05, 2011
NEW YORK -- A pullback could be on the table this week for U.S. stocks after their best weekly performance in two years, especially if a raft of data headlined by the June jobs report doesn't bolster the argument of a strengthening economy.
Stocks rose for five straight days last week as the fog of the Greek debt crisis appeared to once again be lifted while better-than-anticipated economic numbers such as Friday's manufacturing data gave weight to the belief the U.S. economy was starting to recover from a soft patch." http://jlne.ws/oJLG5r

Bond yields tick lower as 'ongoing jitters' keep coming
Jul. 6, 2011
By Julianne Pepitone July 6, 2011
NEW YORK (CNNMoney) -- Bond yields had been flagging for months until a stunningly rapid rise last week, sparked by defused concerns about Greek debt. It seemed yields had finally snapped out for their rut.
http://jlne.ws/p46ycG


U.S.-Listed China Stocks Decline on Rate Rise
By Belinda Cao Bloomberg - Jul 6, 2011
China’s stocks listed in the U.S. retreated from a one-month high after the nation raised interest rates for the third time this year to tame inflation that has quickened to the fastest pace since 2008. http://jlne.ws/o8XVSt

World Bank Approves US$1 billion credit to improve rural livelihoods and boost India’s rural economy
Press Release
WASHINGTON, DC, July 05, 2011- The World Bank today approved US$1 billion credit for the National Rural Livelihoods Project (NRLP) aimed at strengthening the implementation of the Government of India’s newly launched National Rural Livelihoods Mission (NRLM), one of the world’s largest poverty reduction initiative of approximately US$7.7 billion, aiming to reach 350 million people or almost a quarter of India’s population.
http://jlne.ws/naC8fx


MONEY MARKETS-Peripheral turmoil seen as threat to ECB rate cycle
By William James    
LONDON, July 6 (Reuters) - Escalating credit concerns in the euro zone periphery on Wednesday were not seen denting the European Central Bank's intention to raise interest rates on Thursday, but left the outlook for further rate hikes this year hanging in the balance.
http://jlne.ws/n6HBVX

Fed's Bullard Slams Core Price Focus Again In New Research Note
By Michael S. Derby, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Federal Reserve Bank of St. Louis President James Bullard is again attacking the idea of setting monetary policy based on measurements of inflation stripped of food and energy factors.
http://jlne.ws/oTwsys

RATE FUTURES REPORT: Euro Zone Debt Fears Far From Fading
WSJ.com  
By Howard Packowitz Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)--Frayed nerves about Europe's debt problems were on full display Tuesday in U.S. interest rate futures markets, only a week after investors expressed optimism that the crisis might not trigger a global economic slowdown.
Prices shot up Tuesday, particularly for longer-dated Eurodollar futures contracts, as traders projected short-term rates will stay low for a prolonged period.
http://jlne.ws/oLkFMR

U.S. Treasury has more money than you think
CanadianBusiness.com
By Thomas Watson July 05, 2011
After pinching pennies to avoid a U.S. default on debts in July, U.S. Treasury Secretary Tim Geithner now insists Uncle Sam will have to break its obligations to creditors in August unless the federal government’s debt ceiling is raised.
http://jlne.ws/mQbbj1

Rep. John Boehner Slams Obama on Debt Ceiling, Debt Limit Talks
Republicans and Democrats are at an impasse over raising taxes as negotiations continue this week on raising the debt ceiling before the August 2nd deadline set by U.S. Treasury Secretary Timothy Geithner. After August 2nd, if the debt limit isn’t increased, the U.S. will no longer be able to borrow money to pay its bills. The current debt ceiling is set at $14.3 trillion.
http://jlne.ws/rg7ig6

Brazil's Central Bank Buys Dollars For BRL1.5634 At Auction  
WSJ.com
SAO PAULO (Dow Jones)--The Central Bank of Brazil on Wednesday bought U.S. dollars at a snap auction for 1.5634 Brazilian reais to the dollar.  The bank did not reveal the volume of dollars it purchased.
http://jlne.ws/o3w5f6

U.S. Treasury MBS portfolio declines to $94.5 bln
WASHINGTON, July 6 (Reuters) - The U.S. Treasury said on Wednesday its holdings of mortgage-backed securities bought during the financial crisis have been shrunk by more than half to $94.5 billion.
http://jlne.ws/nv59Lp

TREASURIES-Bonds rise as Portugal revives contagion fears
By Richard Leong, Reuters Wed Jul 6, 2011 12:13pm EDT
NEW YORK, July 6 (Reuters) - U.S. Treasury prices rose on Wednesday as Portugal's downgrade to junk status revived fears that Europe's debt problems could cascade, spurring safe-haven demand for low-risk government bonds.
http://jlne.ws/n83HqT