JGBs slide on fall in Treasuries, curve steepens

(Reuters) - The two-year yield climbed to a 10-month high as traders
braced for a Bank of Japan rate rise to 0.75 percent from 0.50
percent that many market players see taking place as early as
August.
But long-term bond yields rose more, and caused the yield
curve to steepen.




"There seems to be a combination of flows, including hedge-
selling in 10- and 20-year JGBs ahead of a 20-year bond auction,"
said Tatsuo Ichikawa, a JGB analyst at ABN AMRO.


Read more at Reuters.com Bonds News

South Korea's Kospi Is Little Changed; SK Corp. Drops, S-Oil Advances

(Bloomberg) -- South Korea's Kospi index swung
between gains and losses. SK Corp. declined as investors judged
the market's recent gains an opportunity to sell.

S-Oil Corp. rose after Hyundai Securities Co. said the
refiner will post record earnings this year on better refining
margins.


Read more at Bloomberg Stocks News

U.S. state opposes NorthWestern sale to Babcock fund

(Reuters) - Babcock and Brown Infrastructure said all five
commissioners came to the decision that the acquisition should
not proceed.




NorthWestern serves about 640,000 electric and natural gas
customers in Montana, South Dakota and Nebraska.


Read more at Reuters.com Government Filings News

Tohoku Electric Shuts Down Nuclear Reactor After Back-up Water Pump Fails

(Bloomberg) -- Tohoku Electric Power Co., Japan's
fourth-largest power producer, shut a nuclear reactor late
yesterday after discovering a mechanical fault at a back-up pump
that supplies water to cool the unit.

The company halted a 524-megawatt reactor at the Onagawa
nuclear power station and started an investigation into the cause
of the failure, the Sendai City-based company said in a statement
on its Web site.


Read more at Bloomberg Energy News

South Korea's Kospi Index Advances to Third Straight Record; S-Oil Rises

(Bloomberg) -- South Korean stocks rose, pushing the
Kospi index to its third record in as many days. S-Oil Corp. rose
after Hyundai Securities Co. said the refiner will post record
earnings this year.

LG.Philips LCD Co. slid after Royal Philips Electronics NV
said it is in talks to sell all or part of its stake in the
company.


Read more at Bloomberg Stocks News

Japan's Government Bonds Fall as Traders Prepare for 20-Year Debt Auction

(Bloomberg) -- Japan's bonds dropped on speculation
traders will sell to protect against potential losses at an
auction of 20-year government debt tomorrow.

Brokerages often reduce bond holdings ahead of auctions in
case yields rise before they can pass on the new debt to
investors. Japan's bonds also fell as they tracked a decline in
Treasuries that pushed 10-year U.S. yields to the highest in
three months yesterday.


Read more at Bloomberg Bonds News

RPT-REFILE-Fed's Lacker: Lower inflation expectations needed

(Reuters) - Clear communications by the central bank could bring
inflation expectations down, he said.




"Without a prompt fall in inflation expectations, a
reduction in inflation below 2 percent is likely to be
temporary and hard to sustain," he said in remarks prepared for
delivery to the Money Marketeers of New York University. A copy
of his speech was made available in advance.


Read more at Reuters.com Bonds News