Week of February 12, 2012 thru February 18, 2012

US News Events Calendar

--Meetings & Events of Interest to Subscribers



13-Feb 1615/1115 White House Office of Management and Budget releases 2013 federal budget proposals to Congress and updated economic assumptions

13-Feb 1545/2045 San Francisco Federal Reserve Bank Pres.

White House To Get Sneak Preview of New China Leadership

WASHINGTON (MNI) - The visit of China Vice President Xi Jinping to White House Tuesday will be an opportunity to get an up-close look at the man expected to be China's next leader, Obama administration officials said Friday.

"The trip will be very important as an opportunity ... for us to learn more about him," Ben Rhodes, deputy national security advisor to President Barack Obama, told reporters during a conference call to preview Xi's visit.

"We look at this visit by Vice President Xi as part of a policy continuum that's in part predicated on the importance of getting the U.S.-China relationship right," he said.

Xi Jinping is widely tipped to succeed Hu Jintao as China's President in 2013.

TheFXSpot: Unwinds Seen As Corrective; Risk Rally Intact?

NEW YORK, Feb 10 (MNI) - The profit-taking and paring back of positions seen Friday was viewed as a much-needed correction that would allow the "risk-on" rally, seen since the start of 2012, to continue going forward.

US Academic: GSEs Conflict Of Interest May Be Understated

WASHINGTON (MNI) - Conflicts of interest that face Fannie Mae and Freddie Mac were addressed during a Senate hearing Thursday and an academic suggested efforts to preserve their retained portfolios may sometimes conflict with other housing goals.

Christopher Mayer, a professor at Columbia Business School told a Senate Banking Committee during a hearing that "this is a very big concern," adding there is a "significant conflict of interest."

Mayer cited a recent report done by National Public Radio and ProPublica, which revealed that Freddie Mac created risky securities called inverse floaters which would continue to pay off as long as the loans underlying the security were not refinanced.

US$ CREDIT SUPPLY PIPELINE - February 10, 2012

Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 2/10 NOTE Korea Development Bank BNP/C/DB/HSBC/ Maturity: 5-yr or 10-yr?

FXWRAP: Euro Slips As Greek Drama Continues Unabated

NEW YORK, Feb 10 (MNI) - The dollar notched modest fresh gains against the euro Friday while slipping slightly against the yen, the driver being a pull-back in risk appetites amid fresh uncertainty over Greece.

Euro-dollar was changing hands at $1.3167 in afternoon dealings, modestly below the $1.3235 level seen as the U.S. session got underway and around the middle of the day's $1.3156-1.3235 range.

Dollar-yen meantime was changing hands at Y77.65 in the afternoon as it held the lower end of the day's Y77.56-80 range after beginning the day around Y77.78.

Afternoon trading was at a slow ebb but featured euro-dollar and dollar-yen both easing slightly, as a backdrop of weak U.S. stocks kept risk-appetites muted.

US Debt Offering, Auction Calendar for Tsy and Agency Issues

February 10

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

FinSys Update: Greece PM: Disastrous If Bailout Not Approved

--Bernanke: Tight Mtg Credit Hurting Fed Efforts To Cut Long-Term Rates

WASHINGTON (MNI) - The following are top events and news reported Friday ET in the global financial system by Market News International:

* Greek Prime Minister Lucas Papademos said Friday that a failure to approve the new bailout agreement with international lenders would be disastrous for Greece. In an address to the Greek cabinet, Papademos added that any Greek politician who did not support the new loan package should not be in the government. The bankruptcy of Greece "is not an option we can allow," Papademos said. The overriding need, he said, is "to do whatever it takes to approve the new economic program and move the new loan agreement.

Sources:$250B PIMCO Ttl Return Fnd Ups Tsys to 38%,MBS to 50%

NEW YORK (MNI) - Sources confirmed that the $250-billion PIMCO Total Return Fund raised its holdings of U.S. Government debt-Treasuries and Mortgage-Backed Securitie

Bernanke:Credit Conditions Still Too Tight For Fin Sys Health

WASHINGTON (MNI) - The Federal Reserve is "extremely" focused on restoring the credit markets to a healthy state, as the continued reluctance of banks to make more credit available impedes the recovery in the housing market and the wider economy.

"It's certainly the case that tight credit remains a problem," Bernanke said during a question and answer session following remarks prepared for the National Association of Homebuilders in Orlando.

"Conditions are still too tight for the health of the financial system of both the financial system ... and for our economy," he said.