Week of April 1, 2012 thru April 7, 2012

Fed's Kocherlakota: Varying Infl Views on FOMC; Target is 2%

CHICAGO (MNI) - Minneapolis Federal Reserve Bank President Narayana Kocherlakota late Saturday said members of the Federal Reserve's policymaking committee hold varying views "on what inflation looks like," but stressed that a 2% rate remains the target.

Speaking to a meeting of the Midwest Economics Association, Kocherlakota reiterated in prepared remarks his point made earlier this month that there are limits to what the Fed can achieve on its own to reduce to reduce unemployment.

Kocherlakota in a March 20 speech that used the same econometric models that he discussed Saturday said the Fed can, by lowering the real interest rate, influence demand for goods and services and indirectly help reduce unemployment in that way.

US News Events Calendar

--Meetings & Events of Interest to Subscribers



31-Mar 2230/1830 Minneapolis Federal Reserve Bank Pres. Narayana Kocherlakota speaks to the Midwest Economics Association in Evanston, Ill. and answers questions from the audience. His prepared text will be similar to that delivered March 20. http://web.grinnell.edu/mea/

02-Apr 1230/0830 Dallas Federal Reserve Bank Pres.

TheFXSpot: March Lion To Lamb; Next Wk Focus On Data and CBs

NEW YORK, March 30 (MNI) - March indeed came in like a lion and out like a lamb, with market players modestly hopeful Friday about what the second quarter might bring.

White House Confident No Adverse Result From Iran Oil Limits

--White House: Iran Concerns Fueling Demand For Non-Iran Crude Oil
--White House: Tightness Remains In Oil Market
--Obama Says Enough Oil Supply To Proceed With Iran Penalties
--Sr Admin Offl: Increased US Oil Production A Factor In Obama Decision

WASHINGTON (MNI) - The Obama administration is confident that tough new sanctions that will take a significant chunk of Iranian crude off the oil market are being implemented and assessed in a manner that will ensure there is no adverse impact on the global economy.

US Debt Offering, Auction Calendar for Tsy and Agency Issues

March 30

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

US Tsy Welcome Eurogroup Move,Reinforcing Currency Union

WASHINGTON (MNI) - The U.S. Treasury welcomed the Eurogroup's move Friday to strengthen the financial firewall, and praised the efforts to reinforce the monetary union.

"Today's announcement by the Eurogroup reinforces a trajectory of positive efforts to strengthen confidence in the euro area," Treasury spokeswoman Natalie Wyeth said in a statement. "Over the last several months, European leaders have made significant progress in addressing the crisis, and we welcome their unequivocal commitment to reinforcing their currency union.

Credit Default Swaps: CDX Little Changed On Week

CHICAGO, March 30 (MNI) - The benchmark index on U.S. investment grade was little changed on the week, but sources say risks remain in the marketplace.


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 3/30 750 *Weatherford Intl Ltd (Baa2/BB 10 T+230 JPM/MS 3/30 550 *Weatherford Intl Ltd (Baa2/BB 30 T+265 JPM/MS 3/29 400 *Flowers Foods, Inc (Baa2/BBB) 10 T+225 BAML/DB 101 CoC Put 3/29 1250 *Barrick Gold Corp (Baa1/A-) 10 T+170 C/JPM/MS/RBC 101 CoC Put, 144A Reg S 3/29 750 *Barrick Gold Corp (Baa1/A-) 30 T+200 C/JPM/MS/RBC 101 CoC Put, 144A Reg S 3/29 750 *Heineken NV (Baa1/BBB+) 10 T+127 BAR/C/JPM 101 CoC Put, 144A Reg S 3/29 500 *MassMutual Global Funding II 5 T+110 C/CS (Aa2/AA+) 144A Reg S Secured by Fundin

FXWRAP: Dlr Mixed, Up Vs Yen, As Quarter-End Passes Quietly

NEW YORK, March 30 (MNI) - The dollar was able to rack up modest gains over the yen while holding about steady over the euro Friday as the first quarter of 2012 ended with a whimper, in currency terms.

Dollar-yen was changing hands at Y82.80 in afternoon dealings, the greenback in the upper reaches of the day's Y81.97-82.86 range after beginning the session near Y82.00.

Euro-dollar meantime was holding at $1.3335, the euro just slightly below its early $1.3340 level of the session after traversing a narrow $1.3310-67 range during U.S. hours.

Afternoon trading was at a slow pace as the first quarter wound down, the date also marking the end of the financial year for most Japanese companies.

Fed/OCC/FDIC: Effective Date for Swaps 'Push-Out' July 16,'13

WASHINGTON (MNI) - The Federal Reserve issued the following advisory Friday:

Agencies Clarify Effective Date for Section 716 of the Dodd-Frank Act

Three federal financial regulatory agencies on Friday issued guidance clarifying that the effective date of section 716, the so-called Swaps Pushout provision, of the Dodd-Frank Wall Street Reform and Consumer Protection Act is July 16, 2013. The guidance is being issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency after receiving inquiries seeking clarification about the effective date.