* Some T-bill rates most negative since end-2011 - Tradweb* Analysts cite quarter-end demand, tight T-bill supply (Updates throughout, adds byline)By Richard LeongNEW YORK, June 22 Interest rates on U.S. Treasury bills that mature in July held in negative territory on Monday as cash investors scrambled for low-risk vehicles to park their money as the end of the second quarter approaches next week. Money market funds and other investors have shifted more cash into the U.S. Federal Reserve's reverse repurchase agreement (RRP) program, given the relative scarcity of ultra short-dated government debt, analysts said.
"Indeed, the growing bid for Treasury bills going into quarter-end finally pushed one-month bills into negative territory on Thursday," J. P. Morgan analysts wrote in a research note on Monday. On the open market, interest rates on T-bills that come due in July were bid at minus 0.005 percent to minus 0.030 percent, down as much as 2 basis points from late on Friday, according to Tradeweb. T-bill rates, depending on maturity, were at their most negative since the end of 2011, Tradeweb data showed.
Heavy demand and tight supply have held T-bill rates in the below 0.10 percent into January 2016 as traders reckoned the Fed won't end its near zero rate policy until early next year. Bidding for T-bill supply on Monday was mixed.
The U.S. Treasury Department sold $24 billion of three-month bills to the lowest overall demand in seven weeks, paying investors an interest rate of 0.01 percent, matching last week's auction, Treasury data showed. The ratio of bids submitted to the amount of three-month T-bills offered was 4.16, down from previous week's 4.57 and the lowest since 4.13 at an auction held on May 14. The Treasury also sold $24 billion of six-month bills at an interest rate of 0.08 percent, down from 0.10 percent the prior week. The six-month T-bill sale's bid-to-cover ratio was 4.29, up from last week's 4.19.
* Deferred rates futures hit lowest levels in 2-1/2 months * Traders price in slim chances of rate hike in 2013 2nd qtr * Overnight repo, fed funds rates remain elevated By Richard Leong NEW YORK, March 14 U.S. short-term interest rates futures fell for a second day on Wednesday as a more optimistic outlook from the Federal Reserve caused some traders to worry the U.S. central bank could raise rates earlier than they had previously thought. Much of the heavy selling in futures on interbank loan costs was for 2003 delivery and beyond, even though the Fed affirmed its pledge to hold short-term rates near zero until at least late 2014. These Eurodollar and federal funds contracts fell to their lowest levels in about 2-1/2 months. December 2014 Eurodollar futures are down 22.5 basis points since Monday's close and are on track for their biggest two-day day drop since last June. "There are some doubts on how long can the Fed keep short-term rates this low. Now it's not that far off to talk about a rate hike," said David Keeble, global head of interest rates strategy at Credit Agricole Corporate & Investment Bank in New York. Fed futures suggest traders are pricing in minute chances the Fed could raise rates in the second quarter of 2013, after the Fed in its policy statement on Tuesday said it sees "moderate" economic growth. A week ago, traders had priced in nil shot of a rate hike. At the same time, overnight costs to borrow dollars held at elevated levels. In the $1.6 trillion repurchase market, the interest rate for banks and Wall Street dealers to obtain overnight loans was quoted at 22 basis points, hovering at a six-week high. The cost for federal funds, which the Fed targets, was last bid at 12 basis points, flat from Tuesday and at its highest level in four weeks. Some analysts downplayed the Fed statement as the catalyst for the dramatic sell-off in the rates and bond markets in the past 24 hours. They blamed the drop in rates futures and elevated cash rates on the recent pickup in Treasury bill supply and improved risk appetite among investors after last Friday's relatively strong U.S. payrolls report. Investor sentiment also got a boost after the Fed decided to release the results of its latest bank stress test shortly after its policy statement, two days earlier than it had planned. The Fed said 15 of the 19 U.S. banks tested could withstand a financial shock that would see unemployment hit 13 percent and housing prices drop 21 percent. Investors welcomed the results as a sign of further recovery in a banking system that was pummeled by the housing meltdown and the ensuing global financial crisis. "We are on firmer footing. Look at the stress test results. They are central to the growth story," Keeble said.
WASHINGTON Oct 31 President Barack Obama is to tout investment opportunities on Thursday when he announces Washington is expanding its efforts to entice foreign firms to bring jobs to the United States, administration officials said. Officials said the United States would start to coordinate efforts at the federal level to attract investment in a way it has not before. Until now, states and cities have been responsible for making pitches for business from abroad."It's not a level playing field for a mayor of one of our cities to have to compete against the prime minister or head of state of a major industrial power," White House National Economic Council Director Gene Sperling told reporters.
Obama is due to make the announcement in a speech to a SelectUSA investment conference with business representatives from around the world, officials said. to attract investmentThe efforts to attract investment would start to mimic the more coordinated export promotion initiatives that government officials have focused on in the past, the officials added.
"The factors driving U.S. investment are so positive that some independent analysts now rank the United States as the number one location where CEOs can be confident to invest," Commerce Secretary Penny Pritzker told reporters.
The president is due to pledge that top administration officials will now advocate greater coordination in locating production and investment in the United States, the officials said.
MELBOURNE Apr 19 Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy. THE AUSTRALIAN FINANCIAL REVIEW (this site)-- Genworth Financial, the largest mortgage insurer in Australia, yesterday postponed its A$800 million partial float after it announced worse than expected losses from the housing sector. Observers say the withdrawal of the initial public offering could weaken confidence in the equity capital market, while also damaging Macquarie Capital, UBS, Goldman Sachs and CommSec, the joint lead managers of Genworth's float. Page 23.-- Wine entrepreneurs Justin Dry and Andre Eikmeier, along with their business partner Leigh Morgan, have sold a 40 percent stake in their vinomofo online wine retailer to the Catchoftheday daily deals website. "Catchoftheday are certainly bringing to the party an awful lot of customers - we have to endear ourselves to them. They've got to like wine and they have to like the wines we like and at the prices we bring to them," Mr Eikmeier said. Page 23.-- Malcolm Turnbull, spokesman on communications for the Federal Opposition, yesterday claimed that the Coalition's broadband policy was "manifestly" in the interests of Telstra investors and could also accelerate payments that the telecommunications giant is due to receive from the Federal Government's national broadband network. "If we took the approach I'm describing, because the rollout would occur more quickly the migration payments would be paid to Telstra sooner," Mr Turnbull said. Page 25.-- Elders is set to receive A$80 million following the sale of its forestry portfolio and a legal victory against the Australian Taxation Office. Malcolm Jackman, managing director of the automotive and rural services group, said the windfall would allow the company to adopt "a more generous approach" to debt repayments. "It will be a game changer in our relationship with our financiers," Mr Jackman added. Page 27. THE AUSTRALIAN (this site)
-- Global miner BHP Billiton yesterday published its production report for the third quarter, revealing a 14 percent fall in coking coal production due to industrial action at seven of its joint-venture mines in Queensland and heavy rain in the state. "With inventories now severely depleted, the impact on future quarters may be significant," the miner said. Diversified financial firm Citigroup downgraded its profit projections for BHP after the report's release, despite higher than expected production for petroleum and iron ore. Page 19.-- Grant Samuel Corporate Finance, JPMorgan Chase Bank and Ricoh are among 15 clients and corporations that will be asked to repay A$80 million in preferential payments from the collapse of Octaviar. Liquidators of the finance group yesterday lodged a claim on behalf of the company's creditors in the New South Wales Supreme Court. If the claim succeeds, the defendants will be forced to return the money into the creditors pool and would then be paid significantly less than the amount they have already received. Page 19.-- The amount of Australian government debt held by investors from Asia has climbed to at least 12.9 percent from 5.8 percent over the last couple of years, with the Australian Office of Financial Management calculating that Asian investors are now the most active purchasers of Australian bonds. Observers say Australia's higher interest rates, triple-A sovereign credit rating and comparatively strong economic fundamentals helped attract Asian investment into local debt. Page 19.-- Shareholders in iron ore explorer Murchison Metals will receive cash after the company opted to return the proceeds from the A$325 million sale of its infrastructure and iron ore joint ventures to investors. "The board has determined that none of the opportunities that have been considered to date represents a compelling opportunity with the potential to enhance shareholder value within an acceptable time horizon," managing director Greg Martin stated in a quarterly report. Page 20.
THE SYDNEY MORNING HERALD (this site)-- Around 460 Australians will be attending the Olympic Games in London this year to cover the event for media outlets such as Macquarie Radio, Nine Network and Foxtel, meaning that there will be 60 more journalists at the Olympics than Australian athletes. Foxtel will broadcast around 1100 hours of the event will live out of a total of 3200 hours on its pay television network. Page B1.-- The former head of Standard Chartered's operations in China, Mike Pratt, yesterday said that it was probable over the next few years that a Chinese bank would seek to acquire a cornerstone holding in a major Australian lender. Mr Pratt added that Australia and New Zealand Banking Group should adopt a longer-time view on Asia and not attempt to produce an earnings boost from the region quickly. Page B1.
-- Andrew Forrest, chairman of iron ore producer Fortescue Metals Group, yesterday accused Federal Treasurer Wayne Swan of attempting to "fool" Australians over a late compromise on the mining tax between former prime minister Kevin Rudd and himself. Mr Swan responded to Mr Forrest's claims that Mr Rudd had approved changes to the resource super profits tax legislation days before his ousting by likening them to mining magnate Clive Palmer's suggestion that the Australian Greens was funded by the Central Intelligence Agency. Page B3.-- Leucadia National has announced that it expects to win a lawsuit against Fortescue Metals Group. The two companies have been locked in a dispute since 2006 when Leucadia, a former cornerstone investor in the iron ore producer, sued Fortescue after it attempted to replicate a royalty note issued in 2006. Leucadia is trying to prevent the Australian miner from issuing further notes, which provide a 4 percent return on profits at certain projects. Page B3. THE AGE (this site)-- The Federal Court yesterday heard that a junior staff member at PricewaterhouseCoopers (PwC) was responsible for the accounting firm's flawed audit of property group Centro's accounts in 2007. Stephen Cougle, the PwC partner who oversaw the audit, testified under cross-examination that he did not believe he made any mistakes. Shareholders have launched a class action against PwC and Centro after the property group announced in late 2007 that it misclassified billions of dollars in short-term debt. Page B3.-- Global online retailer Amazon.com has revived an Australian offshoot of its business, with last year's recruitment of 12 marketing staff and two vice-presidents from America to the local board. Amazon, whose local arm is called Amazon Corporate Services, has been reportedly looking for warehouse space in Australia. Accounting firm PricewaterhouseCoopers estimated the local online book retailing sector's value at A$280 million in 2010. Page B3.-- A report from property group AMP Capital Shopping Centres has concluded that nearly one third of the largest retailers in the world have a base in Australia, with more set to enter the market. Michael Bergdahl, author of the report, said customers were now "omni-channel" shoppers who browsed outlets while checking offers from competitors on phones or other smart devices. Page B3.-- Shares in gold junior Perseus Mining jumped 4.9 percent to close at A$2.35 yesterday after the company unveiled record production figures from its venture in Ghana. Perseus's output was 38,796 ounces for the first quarter of the year at A$700.48 per ounce, with the company generating up to A$1000 an ounce in profit according to yesterday's gold price of around US$1653 an ounce. Page B4.