Week of August 28, 2011 thru September 3, 2011

US Deficit Panel To Hold Organizational Meeting On Thursday

--Co-Chairs of Panel Say First Meeting To Consider Committee's Rules
--First Session Will Also Allow 12 Members To Make Opening Statements
--CBO Chief Elemendorf To Testify On Sept. 13 on 'Drivers' of U.S. Debt

By John Shaw

WASHINGTON (MNI) - The so-called Super Committee created by the
recent debt limit law will convene next Thursday at 10:30 a.m. for its
organizational meeting.

In a joint statement, the panel's co-chairs, Sen. Patty Murray and
Rep. Jeb Hensarling, said the first session will be devoted to

US Debt Offering, Auction Calendar for Tsy and Agency Issues

September 2

Source: U.S. Treasury, Fannie Mae, Freddie Mac Amounts in billions of U.S. dollars

Auction/ Prev. Announce Pricing Settlement Maturity Auction Source Date Issue Date Date Date Size

Upcoming bills and coupon offerings:

UST 06-Sep-11 4-wk 07-Sep-11 08-Sep-11 --- 30.0 UST 08-Sep-11 3-mo 12-Sep-11 15-Sep-11 --- 29.0 UST 08-Sep-11 6-mo 12-Sep-11 15-Sep-11 --- 27.0

US News Events Calendar

--Meetings & Events of Interest to Subscribers

DATE GMT / EST EVENT ------------------------------------------------------------------------

05-Sep - U.S. government, markets closed for Labor Day.

06-Sep 1710/1310 Minneapolis Federal Reserve Bank President Narayana Kocherlakota speech to the Carlson School of Management in Minneapolis.

07-Sep 1515/1115 Chicago Federal Reserve Bank President Charles Evans speech on monetary policy to the European

IMF:Completes 3rd Ireland Review,Releases 1.48Bln Euro Tranche

WASHINGTON (MNI) - The International Monetary Fund board announced
Friday it had completed the latest review of the loan program with
Ireland, approving release of a 1.48 billion euro loan tranche. The text
of the announcement follows:

The Executive Board of the International Monetary Fund (IMF) today
completed the third review of Ireland's performance under an economic
program supported by a three-year, SDR 19.47 billion (about 21.82
billion; or US$31.17 billion) arrangement under the Extended Fund
Facility (EFF), or the equivalent of about 1,548 percent of Ireland's

IMF Warns of Overlapping Spillovers in Major Econs,on World

--If EU Debt Woes Hit Core Banks, Impact Could be as Bad as Lehman
--Impact of Loss of Confidence Re Fiscal Sustainability Could be Huge

By Heather Scott

WASHINGTON (MNI) - The International Monetary Fund warned Friday of
the potential for overlapping spillover effects of economic policies in
major economies on other major economies and on the rest of the world,
notably through financial channels which are intensified in times of

In one particularly grim section, the IMF said, "were the current

NAHB Economist: Don't Expect Significant HMI Change in Sept

By Yali N'Diaye

WASHINGTON (MNI) - The August employment report was definitely
weak, but home builders have already been experiencing such "lousy"
labor market conditions that the latest jobs numbers should not
significantly affect their sentiment, at least in September, the
National Association of Home Builders' Chief economist David Crowe said

FXWRAP: Dlr Up Vs Euro, Flat vs Yen Despite Dismal Data

By Dennis Pettit

NEW YORK, Sept 2 (MNI) - The dollar was able to notch modest gains vs. the euro while holding steady vs. the yen, the greenback able to shrug off a disappointing report on the U.S. labor market that rattled stocks and the dollar in dealings ahead of the Labor Day weekend.

Euro-dollar was changing hands at $1.4185 in afternoon dealings Friday, the single currency in the lower reaches of the day's $1.4182/1.4288 U.S. hours range after beginning the day around $1.4260.

Dollar-yen meantime was changing hands at Y76.75 in afternoon

US Credit Default Swaps: Weak Aug Jobs, EU Concerns Weigh

By Alyce Andres-Frantz

CHICAGO, Sept 2 (MNI) - The benchmark index on investment grade U.S. Credit Default Swaps widened Friday following a pervasively weak August non-farm payroll report, unfriendly news reports on domestic banks and while Europe remains increasingly negative.

Risk assets repriced wider ahead of and after the U.S. August employment report was pervasively weak even after accounting for strikes. August payrolls were unchanged versus estimates of +45,000

Portfolios:Wells Fargo Intl Bond Fnd Favrs Smallr-Country Debt

By Suzanne Cosgrove

CHICAGO, Sept. 2 (MNI) - Amid highly volatile debt markets and
uncertain trends, the London-based Wells Fargo Advantage International
Bond Fund has sharply underweighted developed-nation sovereign debt in
favor of bonds from smaller, healthier economies, a senior portfol

Repeat:US Swaps:Off Early Wides,Sprd Curve Fades FI Flattening

By William Sokolis

CHICAGO, Sept 2 (MNI) - Spreads turned wider across the board
following the lower-than-expected August payrolls data, but soon
reversed course in the front end amid modest mixed flows.