Bonds 12/27/2006

Bonds
Americas
U.S. Treasuries Decline After New Home Sales Increase More Than Forecast U.S. Treasuries fell, pushing yields on benchmark 10-year notes to a six-week high, after a government report showed new-home sales rose more than forecast in November.
Bank Loans Lure Kohlberg Kravis, Carlyle With Junk-Bond Returns, Less Risk Investors are finding junk bond yields with about half the risk in an unlikely place: the U.S. loan market.
Canadian Bond Yields Highest in a Week on U.S. Report Showing Housing Rise Canadian government bond yields rose to the highest level in a week after a U.S. government report showed new home sales increased more than expected.
Lehman Sub-Prime Mortgage-Backed Securities May Be Downgraded by Moody's Low-rated bonds created by Lehman Brothers Holdings Inc. this year through four securitizations of mortgages and home-equity loans to the riskiest U.S. consumers may be cut by Moody's Investors Service.
Europe
European Government Bonds Poised for Their Biggest Annual Drop Since 1999 European government bonds are set for their biggest annual decline in seven years as quickening economic growth and inflation prompted the European Central Bank to raise interest rates to a five-year high.
Mergers Market Is Poised to Get Even Hotter Next Year, Selig, Yeary Say As hot as the mergers market is now, it's about to get hotter.
Gilts Set to Drop, Pound Heads for Biggest Annual Gain Since 1990 on Rates The pound is poised for its biggest annual gain since 1990 as it became the world's third-most popular reserve currency and the Bank of England lifted interest rates to their highest in five years.
Asia
Japan's Bonds Fall on Jiji Report That BOJ May Increase Rates Next Month Japan's 10-year bonds fell the most in more than six months after a Jiji Press report spurred speculation the central bank will lift interest rates next month.
South Korea Plans to Auction Up to 5.4 Trillion Won of Bonds in January South Korea's finance ministry said it will sell up to 5.4 trillion won ($5.8 billion) of government bonds in January, compared with 2.6 trillion won this month.
Philippine Government Bonds Rise on Optimism Government to Sell Less Debt Philippine bonds rose, sending yields to the lowest since at least 1998, on optimism the government will cut debt sales in 2007 as its finances improve.
China, India, Philippines, South Korea, Thailand: Asia Local Bond Preview The following events and economic reports may influence trading in Asian local-currency bonds today. Yields quoted are from the previous session.