Week of December 11, 2011 thru December 17, 2011

US BLS: As CPI Energy Deflates, Core Items Don't Follow


WASHINGTON (MNI) - The year is winding up with energy losing its power to boost the overall CPI but core items hanging tough, led by the dominant shelter category, with the net trend going forward still hard to read but not necessarily disinflationary.

US November CPI Flat; Core Prices Up 0.2% On Apparel, Shelter


--Apparel Prices Jump 0.6%, Medical Care Up 0.4%, Shelter Up 0.2%
--Energy Prices -1.6% On 2.4% Drop In Gasoline, Electricity Up 0.4%

WASHINGTON (MNI) - Consumer prices were flat in November, as expected, but core prices rose faster than expected with a 0.2% rise, data released Friday by the Bureau of Labor Statistics showed.

Talk From The Trenches: In Hot Pursuit Of 30-Year Bonds


NEW YORK, Dec 15 (MNI) - It was a relatively quiet day in the financial markets and that was seen as a blessing to many.

US$ CREDIT SUPPLY PIPELINE - December 16, 2011


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X)

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/15 1250 *JPM (Aa3/A) 30 T+250 JPM 12/15 6000 *Freddie Mac Reference Note 3 T+34 BNP/DB/UBS US/N.Am 66%, Asia 11%, Other 23% Invest Mgrs 55%, CBs 32% 12/14 500 *BAX (A3/A) 5 T+100 BAML/C/JPM 12/14 850 *GE Capital Corp (Aa2/AA+) 1.5 3mL+60 BAML FRN 12/13 500 *PPL Energy (Baa2/BBB) 10 T+262.5 DB/RBS/SCO/WFS

U.S.

US$ CREDIT SUPPLY PIPELINE - December 16, 2011


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X)

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/15 1250 *JPM (Aa3/A) 30 T+250 JPM 12/15 6000 *Freddie Mac Reference Note 3 T+34 BNP/DB/UBS US/N.Am 66%, Asia 11%, Other 23% Invest Mgrs 55%, CBs 32% 12/14 500 *BAX (A3/A) 5 T+100 BAML/C/JPM 12/14 850 *GE Capital Corp (Aa2/AA+) 1.5 3mL+60 BAML FRN 12/13 500 *PPL Energy (Baa2/BBB) 10 T+262.5 DB/RBS/SCO/WFS

U.S.

US$ CREDIT SUPPLY PIPELINE - December 16, 2011


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X)

Date $MM Issuer/CR/Descr Mat Yield Lead(s) 12/15 1250 *JPM (Aa3/A) 30 T+250 JPM 12/15 6000 *Freddie Mac Reference Note 3 T+34 BNP/DB/UBS US/N.Am 66%, Asia 11%, Other 23% Invest Mgrs 55%, CBs 32% 12/14 500 *BAX (A3/A) 5 T+100 BAML/C/JPM 12/14 850 *GE Capital Corp (Aa2/AA+) 1.5 3mL+60 BAML FRN 12/13 500 *PPL Energy (Baa2/BBB) 10 T+262.5 DB/RBS/SCO/WFS 12/12 600 *Banco de Bogota (Baa2/BBB-) 5 5.25% C/HSBC/JPM 144A Reg S Chatter that order book very oversubscribed. 12/12 200 *CAT (A2/A) FRN MTN 2 3mL+30 BAML/JPM 12/

Euro CDS: Consumers Underperform In Subdued Session


LONDON, Dec 16 (MNI) - European credit markets have had a fairly subdued session, with stocks and CDS prices little changed in the main.

Euro Credit: New Issues To Remain Slow


LONDON, Dec 15 (MNI) - The new issues market has had a very quiet week with barely any flow going through. With the Christmas holidays now coming up activity will remain subdued into next week.

Repeat: ANALYSTS: Aussie May Stay Below Parity Until H1 2012


SYDNEY (MNI) - The lingering European sovereign debt crisis and concerns about slowdown in global growth may finally weigh on the Australian dollar and push it lower in the months ahead, analysts say.

The Australian dollar slipped below the parity level against the U.S. dollar earlier this week and while it may still rise above that level in the near term, the outlook is for a currency which will steadily grind lower from here.

By the first half of 2012, analysts expect the Australian dollar to fall to the $0.9500 level, some even expecting the currency to drop below that level for the first time since September 2010.

Ldn FX: Euro Buoyed As Shorts Pared In Thin Pre-Weekend Trade


LONDON, Dec. 16 (MNI) - A paring back of long dollar positions ahead of the weekend provided an underlying buoyant tone for euro-dollar though rate continued to meet stiff resistance in the area between $1.3040/50 which restricted upside progress.

Markets remain thin and open to order driven trade.

EURO SUMMARY: Opened early Europe at $1.3028

-- Euro-dollar closed in NY at $1.3016 with rate marking Asian session

lows at $1.30121 in opening trade before edging higher. The dollar was seen under pressure through Asia, mainly on a paring back of risk aversion positions, with markets boosted by RBI action to curb pressure on the rupee, as well as dollar-yuan marked lower at the parity fix.