David Keeble News
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Hedge funds are the most bullish on 10-year Treasuries since 2007, betting the U.S. economy is too fragile for the Federal Reserve to stop buying bonds even as the jobless rate drops to the lowest in four years and household wealth climbs.
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Credit Agricole Corporate & Investment Bank hired Luca Jellinek from ANZ Banking Group Ltd. as head of European interest-rate strategy in London.
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Portugal’s sale of 10-year bonds may benefit from an almost $1 trillion European Union bailout that sent yields on the nation’s debt tumbling.
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The rate banks say they pay for three-month loans in euros may rise today, according to Credit Agricole Corporate & Investment Bank.
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The rate banks pay for three-month dollar loans held near the highest level in about nine months as Europe’s near-$1 trillion loan plan failed to encourage institutions to lend more to each other.
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German two-year notes rose, sending yields to zero for the first time, as investors were prepared to forgo a return in exchange for safety amid Europe’s escalating debt crisis.
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For the first time, the U.S. is at risk of defaulting, and derivatives show that it’s riskier to hold German bunds than Treasuries.
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The rate banks say they pay for three-month loans in dollars fell, snapping 13 days of gains, as financial institutions became less wary of lending cash.
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Greece’s 10-year government bonds dropped for a seventh day, pushing the yield over 8 percent, on concern negotiations to complete an aid package for the country may take three weeks. Portuguese debt fell for a fourth day on speculation the nation may also need a bailout.
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European nations including Italy, Belgium and Spain may sell more than 33 billion euros ($43.3 billion) of securities this week as credit-rating cuts risk upending optimism the region’s debt crisis is being contained.
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