Top Interest Rate headlines Sept. 6, 2011: 10-Year Treasury Yield Hits Lowest In Over 50 Years

10-Year Treasury Yield Hits Lowest In Over 50 Years 
By Takashi Mochizuki Of DOW JONES NEWSWIRES
TOKYO (Dow Jones)--The yield on the cash 10-year U.S. Treasury note dropped to its lowest level in over 50 years in Asia Tuesday, and traders say it is likely to keep falling due to concerns over European debt and expectations for more easing by the Federal Reserve.
http://jlne.ws/pCgXdV

Europe's debt crisis grabs investor attention
NEW YORK (CNNMoney) -- The occasional long weekend is relaxing, but money never sleeps. While the U.S. markets were closed on Monday for Labor Day, most European stock indexes experienced a massive sell-off to the tune of 5% or more.
http://jlne.ws/qrUhtc

Fed’s Kocherlakota: Economy Does Not Need More Easing
By Joshua Zumbrun, Bloomberg
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the U.S. economy didn’t need additional stimulus in August and probably won’t require more easing this month.
http://jlne.ws/pMTv0E

The Fear Trade Still Lives
Crossing Wall Street "The Fear Trade isn’t leaving so quietly. The futures market indicates that the stock market is going to open about 2.5% lower this morning. Gold is back above $1,900 which is about 1% higher, and the bond market is up strongly as well.
The yield on the 10-year Treasury got as low as 1.907% which is the lowest yield since the 1940s.
http://jlne.ws/okGP0T

Brazil Inflation Accelerated to Fastest Since 2005 Ahead of Shock Rate Cut
Bloomberg
Brazil’s inflation accelerated for the 12th straight month in August to its fastest annual rate since 2005, reinforcing economist views that the central bank may have cut borrowing costs prematurely.  http://jlne.ws/n6tB50

RBA Holds Key Rate at 4.75% Amid 'Unsettled' Global Markets
Sept. 6 (Bloomberg) -- The Reserve Bank of Australia left its benchmark interest rate unchanged for a ninth straight meeting, citing unstable financial markets and weaker growth prospects at home and abroad.
http://jlne.ws/pqXF0C

October Rate Cut Prediction Shows U.S. Slump Spilling Over: Mexico Credit
By Jonathan J. Levin, Bloomberg
Mexico will follow Brazil and Turkey in cutting interest rates next month to help shield the economy from a slowdown in the U.S., swaps trading shows.
http://jlne.ws/qIAX5Z

ELX ANNOUNCES AUGUST RESULTS WITH MULTIPLE RECORDS SET IN THE 30-YEAR U.S. TREASURY BOND FUTURES AND EURODOLLAR FUTURES
ELX Futures, L.P. (ELX), a leading electronic futures exchange, announced today that it established multiple new records in its 30-Year U.S. Treasury bond futures contracts as well as its Eurodollar futures contracts for the month of August.
http://jlne.ws/qALuSx

Stocks Slide, 10-Year Treasury Yield Drops
Bloomberg
Stocks sank, sending Europe’s benchmark index to a two-year low, while 10-year Treasury yields slid to a record amid growing concern Europe’s debt crisis is worsening. The franc weakened the most since the creation of the euro as the Swiss central bank set a ceiling on the exchange rate.
http://jlne.ws/qccLg1

Turkey Sells Less Debt Than Expected, Pushing Up Yields
By Selcuk Gokoluk
Turkey sold a net 1.52 billion liras ($860 million) of 20-month benchmark bonds at an average yield of 7.70 percent at an auction today, pushing yields in the secondary market higher because traders said demand was less than expected.
http://jlne.ws/neV8JH

HEARD ON THE STREET: Fed Struggles With Twisted Logic
By DAVID REILLY, WSJ.com
Even if the Fed "twists," the economy may not dance with it.
Friday's disappointing jobs figures heightened investor expectations the Federal Reserve will embrace more extraordinary easing at its late-September meeting. Monday's European stock plunge will only fuel such thinking. One likely course of action: The Fed will shift, or "twist," its $1.65 trillion portfolio of Treasury securities to hold more long-dated government debt.
http://jlne.ws/qHhfBW

Deutsche Bank CEO Says Europe Crisis Could Kill Weak Banks
Wall Street & Technology
Europe's sovereign debt crisis will stunt bank profit for years and could kill off the weakest financial services companies, Deutsche Bank chief executive Josef Ackermann told industry bosses.
http://jlne.ws/nabkuu

Switzerland Caps Franc
By DEBORAH BALL, WSJ.com
LONDON—The Swiss National Bank set a limit on how far it will let the Swiss franc rise against the euro, the bank's most aggressive attempt yet to rein in the soaring currency.
http://jlne.ws/n3xs7t