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Investors flocking to bonds amid uncertainties

SEOUL, Feb. 5 (Yonhap) -- Investors are putting money in bonds, defying expectations that better economic situations and the U.S. Fed's reduced assets purchases will trigger a capital move into stocks and other risky assets, data showed Wednesday. The yield on benchmark 3-year Treasurys stood at 2.85 percent on Tuesday, hitting a yearly low, with that on 5-year and 10-year Treasurys each reaching yearly lows of 3.17 percent and 3.54 percent, respectively. The yield moves opposite to the price.

Italy borrowing costs fall in bond auction

Italy's borrowing costs dropped on Thursday in a bond auction that raised 8.5 billion euros ($11.6 billion), reflecting improved investor confidence. The Italian Treasury said it had sold 4.0 billion euros in bonds to be redeemed in May 2019 at an average rate of return to investors of 2.43 percent, which Italian financial news agency Radiocor said was a record low level. It also auctioned off 3.0 billion euros in bonds due in March 2024 at 3.81 percent compared to a rate of 4.11 percent in the last similar auction in December.

US municipal bond insurance's contraction slowed in 2013

WASHINGTON (Reuters) - The amount of insured U.S. municipal bonds fell last year to the lowest level since the financial crisis - $12.08 billion - but Thomson Reuters data released on Friday showed the freefall may be over. Last year's decline in bond insurance of 9 percent was the smallest in a decade, the data showed.

Analysis:Shrinking U.S. municipal fund outflows could signal end of exodus

By Lisa Lambert WASHINGTON (Reuters) - A record-setting flood of money from the U.S. municipal bond market may be near an end as the sector's high yields beckon investors bearing cash from year-end redemptions. In a hint that the relentless sell-off that sucked $62.6 billion out of municipal bond funds in 2013 is winding down, data from Lipper on Thursday showed net outflows slowed to just $18.99 million in the week ended January 8.

Mexico sells $4 bn in long-term debt

Mexico City, Jan 10 (EFE).- Mexico has sold $4 billion in global bonds maturing in 2021 and 2045, the Finance Secretariat said. The government sold $1 billion in seven-year bonds Thursday at a yield of 3.607 percent, 120 basis points more than U.S. Treasury securities of the same maturity. It also sold $3 billion in 30-year bonds at a yield of 5.586 percent, 170 basis points higher than Treasuries.

S. Korea issues 88.4 tln won worth of Treasurys in 2013

SEJONG, Jan. 6 (Yonhap) -- South Korea sold 88.4 trillion won (US$82.9 billion) worth of Treasurys last year amid strong demand, the finance ministry said Monday. The amount was up from the previous year's issuance of 79.7 trillion won, the ministry said in a press release. That brought the total outstanding state bonds to 400.6 trillion won at the end of last year.

Analysis: Little respite seen for U.S. municipal bonds in 2014

By Lisa Lambert WASHINGTON (Reuters) - The withering U.S. municipal bond market will shrink even more well into 2014, with interest rate and credit risks keeping both investors and borrowers away. Barring an unforeseen turnaround in the final weeks of 2013, municipal bonds will post their first negative annual performance since the financial crisis, with investors fleeing municipal funds at a record pace and the market's overall size, now less than $3.7 trillion, contracting for a third straight year.

U.S. muni bond market contracts by most ever: Fed

WASHINGTON (Reuters) - The U.S. municipal bond market shrank at a record pace in the third quarter, and the amount of bonds held by households, the market's biggest investors, fell to the lowest level in nearly seven years, according to Federal Reserve data released on Monday.

Japan plans to double inflation-linked bond issue in 2014/15: government sources

TOKYO (Reuters) - The Japanese government is planning to double its issuance of inflation-linked bonds to 1.2 trillion yen ($11.7 billion) next fiscal year, government sources said on Tuesday, in a sign of confidence the economy is emerging from 15 years of deflation. Inflation-linked bonds, whose principle increases with rising consumer prices, are used by investors in many countries as a hedge against inflation. Their yields also serve as a gauge of inflation expectations.

Ontario to introduce 'green bonds' to help fund public transit expansion

TORONTO - Ontario will be the first in Canada to issue so-called green bonds next year to generate the billions of dollars that's needed to expand public transit, Premier Kathleen Wynne said Wednesday. The program, an innovative tool to raise money to build infrastructure across the province, will be unveiled in next week's fall economic update, she said. "Green bonds are a great tool to raise capital for a project with specific environmental benefits," she said.
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