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Talk of interest rate rise rocks U.S. municipal bond market

By Lisa Lambert (Reuters) - The possibility of rising interest rates rocked the U.S. municipal bond market on Thursday, with prices plunging in secondary trade, investors selling off the debt, money pouring out of mutual funds and issuers postponing nearly $2 billion in new sales. "The market got crushed," said Daniel Berger, an analyst at Municipal Market Data, a unit of Thomson Reuters, about the widespread sell-off.

Spain raises four billion euros in bond auction

Spain raised four billion euros in medium and long-term bonds Thursday a day after the IMF said the outlook for the nation remained bleak. The Spanish treasury said the results had exceeded expectations, though the country paid a slightly higher rate for the 10-year bonds. The Treasury had expected to raise 3.0-4.0 billion euros via the bond auctions, and demand outstripped supply by a ratio of two to one.

Spain raises four billion euros in bond auction

Spain raised four billion euros in medium and long-term bonds Thursday a day after the IMF said the outlook for the nation remained bleak. The Spanish treasury said the results had exceeded expectations, though the country paid a slightly higher rate for the 10-year bonds. The Treasury had expected to raise 3.0-4.0 billion euros via the bond auctions, and demand outstripped supply by a ratio of two to one.

Bond prices sag as Bernanke signals less bond buy

By Karen Brettell and Richard Leong NEW YORK (Reuters) - Treasuries prices slid on Wednesday as the Federal Reserve chairman suggested the U.S. central bank was prepared to reduce its bond purchases if its economic outlook proves correct, even though the U.S. economy remained stuck at a sluggish pace. Bernanke's remarks at a new conference after a central bank policy-maker meeting confirmed traders' deepest worries that the dawn of near-interest-free money from the Fed might be approaching an end sooner than they had thought.

DoubleLine's Gundlach says Fed to cut bond-buying later in year: CNBC

NEW YORK (Reuters) - Jeffrey Gundlach, head of DoubleLine Capital LP, said Wednesday that the U.S. Federal Reserve is likely to reduce its bond purchases later this year and touted long-term Treasuries as a strong investment. "I think that the Fed is going to reduce their bond purchases later this year," Gundlach told cable television network CNBC.

Rhode Island on track to make payment on 38 Studios bonds

(Reuters) - Rhode Island remains on track to make a $2.5 million interest payment next year on bonds that were used to finance the facilities of 38 Studios, a now-bankrupt videogame company founded by former Boston Red Sox pitcher Curt Schilling. The state's House Finance Committee approved a budget late Tuesday night that included making an interest payment next May on $75 million of taxable bonds that the state sold in 2010 to make a loan to the company and lure it to Rhode Island.

Coupon rate for new 10-year Japan gov't bonds up to 0.8%

The Finance Ministry on Tuesday raised the coupon rate for new 10-year Japanese government bonds to 0.8 percent from 0.6 percent in May, given that yields on the country's sovereign debt in the market have risen since last month. In an auction, the No. 329 issue of benchmark long-term bonds drew 6,889.6 billion yen in bids, of which the ministry accepted 2,192.2 billion yen. The debt will be issued on June 20 and will mature on June 20, 2023.

S. Korea to sell 6.9 tln won in state debts in June

SEJONG, May 30 (Yonhap) -- South Korea plans to issue state bonds worth about 6.9 trillion won (US$6.1 billion) in June, the finance ministry said Thursday. According to the ministry, the government seeks to sell 1.8 trillion won in three-year Treasuries, 1.6 trillion won in five-year debts and 2 trillion won worth of 10-year bonds next month. It also plans to issue 700 billion won worth of bonds that mature in 20 years and 800 billion won in 30-year bonds. The ministry said it sold about 7.4 trillion won worth of bonds this month.

Spain's borrowing costs creep higher

Borrowing costs for Spain crept higher Thursday as the recession-hit country made big inroads into financing state spending for 2013. The Spanish treasury raised 4.076 billion euros in a sale of bonds expiring in three, five and 13 years. But demand for the bonds eased off and the Treasury had to offer a slightly higher return to lure buyers when compared to the last similar auction on May 9.

Exclusive: Philippines to stick to debt plan despite ratings upgrade - IFR

NOIDA, India, May 2 (IFR) - The Philippines will focus on the onshore market for its funding needs in 2013 rather than offshore even after the country sealed full investment-grade status with its second credit rating upgrade, Treasurer Rosalia de Leon said. The upgrade opens the door to fresh foreign capital because the Philippines is now eligible to be part of indices used to benchmark tens of trillions of dollars in investments.
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