Week of August 28, 2011 thru September 3, 2011

US News Events Calendar

--Meetings & Events of Interest to Subscribers

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

01-Sep 1600/1200 Federal Reserve Gov. Elizabeth Duke speech on rebalancing the housing market to a Fed housing conference in Washington.

01-Sep 1730/1330 White House OMB releases mid-session budget review in Washington.

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

Euro Credit: Finland Joins Pipeline With New 5Y Benchmark Bond

LONDON, Sep 1 (MNI) - The new issues market remained quiet as the
holiday season continues and traders stayed on the sidelines ahead of
Friday's US Non-Farm payrolls data.

ECB's Stark Defends Accepting Collateral From Weak EMU States

ALPBACH, Austria (MNI) - The European Central Bank's acceptance of
sovereign debt from weaker Eurozone governments as collateral in its
refinancing operations is consistent with international practice,
Executive Board member Juergen Stark said Thursday.

ECB's Stark: There Is No Alternative To Fiscal Consolidation

ALPBACH, Austria (MNI) - The European Central Bank's acceptance of
sovereign debt from weaker Eurozone governments as collateral in its
refinancing operations is consistent with international practice,
Executive Board member Juergen Stark said Thursday.

Ldn FX: Sterling Buoyed By Manuf PMI Survey, EU Farm Payment

LONDON, Sep 1 (MNI) - Release of stronger-than-expected CIPS
manufacturing PMI data, along with talk of a large euro-sterling sell
order to be seen at the end of September, acted to provide sterling with
support through European morning trade Thursday, the pound able to make
gains in the crosses, with the demand providing buoyancy above $1.6200
in cable as euro-dollar came under heavy sales pressure.

STERLING SUMMARY: Opened early Europe at $1.6235 stg0.8849
- Cable closed in NY at $1.6240, as rate recovered off late session

Ldn FX: Weak Manufacturing PMIs, Spain Auction Pressure Euro

LONDON, Sep. 1 (MNI) - New month saw euro under fresh pressure,
with release of weaker-than-expected EMU manufacturing PMI's and a poor
Spanish auction, adding to the negative weight.

Euro-dollar extended recent lows to $1.4264, with sales via crosses
also adding to the downside pressure.

EURO SUMMARY: Opened early Europe at $1.4365
-- Euro-dollar closed in NY at $1.4375 after recovering off late session
lows of $1.4359, with move extending to $1.43853 into early Asian
dealing. The early rally was reversed as dollar-yen saw aggressive,

UK DMO Sells Stg3 Bn 3.75% 2021 Gilt; Cover 1.99; Tail 1.0 Bp

LONDON (MNI) - The UK's Debt Management Office (DMO) announced
Thursday that it sold Stg3.0 billion of the 3.75% September 2021 gilt
at a bid-to-cover ratio of 1.99.

Weidmann: ECB Must Return To Core Functions To Keep Trust

-- Decisions on new measures must be taken by governments

FRANKFURT (MNI) - The European Central Bank must roll back risks it
has taken on during the crisis and leave any decision over additional
risk-taking to democratically-elected governments, ECB Governing Council
member Jens Weidmann said Thursday.

Weidmann also warned that the recent step towards risk pooling in
the Eurozone must be complemented either by fiscal union or else
stronger powers of fiscal control and a strict application of the
no-bailout clause.

ECB's Stark: There Is No Alternative To Fiscal Consolidation

ALPBACH, Austria (MNI) - Fiscal consolidation is Europe's only
choice, European Central Bank Executive Board member Juergen Stark said
Thursday.

France Data: OAT Auction Results

PARIS (MNI) - The French Treasury on Thursday tapped its 10-year
benchmark OAT as well as its October 2016 OAT and its April 2041 line
for a for a total of E7.815 billion. (Following results in billions of
euros.)

[[ 5.0% 2016 3.25% 2021 4.5% 2041 ]]

Settlement date September 6 September 6 September 6
Maturity October 2016 October 2021 April 2041
Volume announced < 6.5 to 8.0 >