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Money markets us rate futures fall after fomc minutes


* US rate futures fall as Fed backs off from more stimulus* Repo rates rise on worries about sterilized Fed program* Three-month dollar Libor edges up but Euribor dips* Strong bids for 1-mo T-bills, cool demand for 1-yr billsBy Richard LeongNEW YORK, April 3 Short-term U.S. interest-rate futures fell on Tuesday after the minutes from the Federal Reserve's last policy meeting suggested policymakers are not ready to embark on more bond purchases to tweak rates lower in a bid to stimulate the economy. While the high unemployment rate and Europe's debt troubles could hamper U.S. growth, fewer members of the Federal Open Market Committee seem keen to engage in a third large bout of quantitative easing, also known as QE3."I believe there might be no QE3 immediately. They are more on the fence now about keeping rates exceptionally low through at least late 2014. This is not what the market is looking for," said Robbert Van Batenburg, head of global research at Louis Capital Markets in New York. Indeed, the perceived hawkish tone of the minutes of the FOMC's March 13th meeting fueled speculation whether policymakers might begin to discuss raising the Fed's policy rate target when the U.S. economy gains more traction. The Fed has held its target for the federal funds rate in a range of zero to 0.25 percent since December 2008.

Nearby Eurodollar and federal funds futures turned negative in reaction to the FOMC minutes, while deferred contracts added to earlier losses. The December 2014 Eurodollar contract was down 8.5 basis points - on track for its biggest one-day drop in two weeks - at 98.605. Still, rate futures implied traders are not fully pricing in a Fed rate increase to happen until early 2014.

DOLLAR CASH RATES RISE Before the release of the FOMC minutes, the overnight interest rates on fed funds and repurchase agreements hovered at their highest levels since last summer on worries that the FOMC minutes show discussions on "sterilized" bond programs as an option to hold down long-term borrowing costs, analysts said. Moreover, they reckoned the loans to fund the purchases of the U.S. Treasury Department's combined $99 billion in coupon bond supply have not been fully unwound. The Wall Street Journal reported, citing people familiar with the matter, on March 7 that should the Fed decide to buy more bonds to boost growth, it could borrow back the money it used to buy those bonds for short periods of time at low interest rates. Doing so would take that money out of circulation, or "sterilize" it, exerting upward pressure on short-term interest rates. In repo trading, what banks and bond dealers charge each other for overnight loans secured by Treasuries was last quoted at 0.23 percent mid-market, down from 0.26 percent on Monday, but up from about 0.05 percent at the end of 2011.

In the fed funds market, whose rates the Fed monitors closely, the cost for banks to borrow excess reserves from each other overnight was last bid at 0.25 percent, up from 0.09 percent late on Monday. In the unsecured dollar sector, the benchmark London interbank offered rate for three-month dollars edged up to 0.46915 percent from Monday's fixing of 0.46815 percent. But for the dollar Euribor, which made its debut on Monday , the three-month rate in that index series increased to 0.95643 percent from 0.95714 percent. At Tuesday's Treasury bill auctions, data showed strong demand for the latest one-month supply, but reduced appetite for this month's one-year offering. The bid-to-cover ratio at the $30 billion sale of one-month bills came in at 4.75, which was the highest since the auction held on Jan. 24. The Treasury sold the latest one-month bills at an interest rate of 0.055 percent, the lowest level since the ones sold on Jan. 31. On the other hand, the bid-to-cover at the $26 billion auction of one-year bills was 4.31, the lowest since August 2011. The drop-off in appetite for one-year bills resulted in a rise in the clearing rate on them. They were sold at 0.185 percent, up from 0.170 percent at the March auction and the highest since July 2011.

Money markets us sells 4 week bills at lowest rate since july


sold $40 billion in four-week bills o n T uesday at the lowest interest rate since late July, less than a week after the Federal Reserve extended its commitment to keep short-term interest rates near zero to mid-2015. The Fed had previously said it would keep short-term rates between zero and 0.25 percent until late 2014. The lower one-month T-bill rate resulted even though the ratio of bids received over those accepted was 4.13, at the lower end of the recent range, said Thomas Simons, vice president and money market economist at Jefferies & Co in New York. The high rate of 0.08 percent on the latest one-month bill supply was the lowest since 0.075 percent at an auction held on July 31.

"With (general collateral) repo rates in the high 20s, it's difficult to see more investor interest at these auctions," Simons said. Overnight repo rates drifted higher on Monday, closing at 30 basis points. They opened a little softer on Tuesday as the Street worked through pressures related to settlement of last week's Treasury coupon auctions."There should be a bit of a reprieve later in the week as the settlements get absorbed," said Roseanne Briggen, market analyst at IFR, a Thomson Reuters unit.

But that relief could be fleeting as monthly payments from government-sponsored enterprises "sap cash from the system beginning next week," she said. The Treasury also sold 52-week bills in an auction that drew a bid-cover ratio of 4.92, the highest since May 30 and the third-highest since the issue was reintroduced in June 2008.

Dealers got 60.6 percent of the issue, at the bottom end of the range over the past year, Simons said."Loading up on shorter-term securities is a very safe trade because the Fed isn't going to tighten for two or three years," said Jim Steinkirchner, senior vice president and capital markets derivatives manager at Bank of the West in Los Angeles. Overseas, Libor continued its downward trend, fixing 0.2 basis point lower to 0.37875 percent."Libor reflects the marketplace's increasing comfort with the European financial situation," said Steinkirchner said. "The market has accepted that what (European Central Bank President Mario) Draghi put forth is coming through.""That's also (evident) in European bank credit default swaps, which are near the lows of the year," he said.

Nigerias bad bank amcon to publish list of loan defaulters


LAGOS, July 27 Nigeria's "bad bank" AMCON on Monday asked loan defaulters to immediately square their accounts or it would publish their names in line with a directive by the central bank. The central bank in April directed lenders to give bad debtors three months to square their accounts, otherwise they would be named in the media and barred from taking part in Nigerian currency and government debt markets. Asset Management Corporation of Nigeria (AMCON) warned bad debtors on Monday that if loans remained unpaid, it will take steps to recover the debts including by legal means. It advised debtors not to assume it will forgive their indebtedness.

It also asked bad debtors to present restructuring plans, it said in a statement. AMCON was set up in 2010 to absorb non-performing loans in exchange for government bonds, after the central bank injected $4 billion to rescue nine lenders from collapse six years ago.

The central bank has since set an upper limit of 5 percent for non-performing loan ratio for the industry. Before the 2009 bailout non-performing loans ratio stood in double digits.

Top Nigerian commercial lenders including Stanbic IBTC , Diamond Bank, First Bank and Skye Bank, have all given notices to bad debtors to pay up. The bad bank this year said it had recovered 57 percent of bad debts, estimated around 1.8 trillion naira from over 12,000 debtors of commercial lenders in Africa's top economy.

Personal finance us political pundits careers began with paper routes,


Oct 1 Turn on your TV set and who do you see?These days, it is very likely a political pundit, weighing in on the 2016 presidential campaign. They have become stars in their own right. But they were not always famous. We asked James Carville, Chris Matthews, Clarence Page and Chuck Todd, a few of the country's leading political experts, about their first jobs. James CarvillePolitical strategist; panelist, CNN's "The Situation Room"First job: Construction worker"My high school job was putting insulation in attics, in Louisiana in the summer. It must have been 95 degrees every day, and the insulation used to get all over me. It was not fun. But I didn't know any different. It wasn't like I was spending summers on Cape Cod."At the time, back in 1960, it was a lot of money - a few bucks an hour. It was probably equivalent to $25 an hour today. I never had that kind of money before, and I didn't want to give it up. I didn't put that money aside for college, though - I probably spent it all on girls and beer."I knew that manual labor wasn't the career for me. I didn't really need an attic insulation job to tell me that. My only focus at the time was the next hot girl and the next cold beer - in that order."

Chris MatthewsHost, "MSNBC's Hardball with Chris Matthews"First job: Newspaper delivery boy"Back in 1959, I had a little 5-mile, 50-paper route for the Philadelphia Bulletin. I was basically a contractor, because the Bulletin didn't give me a nickel. I had to go out and collect. If I didn't collect, I didn't get anything."The daily paper cost five cents, and my cut was a penny and two-thirds for every one I delivered. The Sunday edition cost 20 cents, and I got a nickel. But the worst day was Tuesday: All the local department stores like Wanamaker's and Gimbels would take out ad space, since Wednesday was the big shopping day back then, and so the papers were just huge.

"I'm making it sound like a Dickensian workhouse. But I really was on my own out there, riding around on my bike every day, no matter what. I remember when I went around to collect, people were usually watching 'American Bandstand.' That's how old I am."Clarence PageColumnist, Chicago Tribune; panelist, "The McLaughlin Group"First job: Busboy"My mother Maggie had a restaurant back in Ohio, and for a kid, that means you're going to start working from a very early age. I was only 12, busing tables, working in the kitchen, even taking orders in my cute little jacket."The place was called Page Manor Cookteria, and it served family-style soul food like fried chicken. The most expensive item on the menu was a T-bone steak, which cost $5. Back in the '50s, you could have a heck of a day with $5. As a point of reference, going to the movies cost just 75 cents.

"Family restaurants don't always obey minimum-wage laws, so I think I got around a dollar a night. My mother was a terrific cook and guarded her recipes like the CIA. She was especially known for her dinner rolls, a recipe she took to her grave. Later on I found out she just used a whole lot of butter."Chuck ToddModerator, "Meet the Press"; Political director, NBC NewsFirst job: Grocery bagger"As soon as I turned 16, I started as a bagboy at a Publix grocery store in Miami, at 107th Avenue and Kendall Drive. I made $3.35 an hour. I did that for about a month, and then I was promoted to the stockroom."First I was in charge of the beer-and-soda aisle, and then the dairy aisle. When you had a 'beat' like that, then you could get out of the worst duties like mopping up bathrooms, or cleaning up vomit on aisle three."At first my earnings went to paying back my dad for my first car, an '81 Buick Skylark that cost $600. When my dad died within six months of my taking that job, that store became a place of refuge for me. It was like going to work with a whole bunch of big brothers."That Publix was the grocery store that Janet Reno used to shop at. Once I had to go in the back to get her fresher milk."

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