Week of June 17, 2012 thru June 23, 2012

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / ET EVENT

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18-19 Jun -- Treasury Secretary Tim Geithner attends the G-20 meeting in Las Cabos, Mexico with President Obama. On June 18 he will attend a working dinner of finance ministers. On June 19, Geithner will have a bilateral meeting with Chinese Vice Premier Wang Qishan.

US Debt Offering, Auction Calendar for Tsy and Agency Issues


June 15

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

US Peterson Inst: Greek Elections Could Force ECB Debt Purch


WASHINGTON (MNI) - A victory by Greece's anti-austerity party in Sunday's election could put international markets in turmoil, and could prompt further purchases of Italian and Spanish debt by the European Central Bank, according to senior analysts Friday at the Peterson Institute for International Economics.

Another scenario that could have an equally negative effect would be a repeat of the outcome of the last Greek election -- in which no coalition was formed -- due to the time it would take to carry out another election.

"If we take another six weeks it seems quite likely that the Greek government will run out of cash before a third election," analyst Jacob Kirkegaard said in a conference call with reporters.

FXWRAP: Dlr Slips As Data Weighs, Euro Up On Position Paring


NEW YORK, June 15 (MNI) - The dollar was nursing slight losses against the euro and the yen Friday, undercut by a shallow dip in U.S. Treasury yields that followed the release of weaker-than-expected U.S. economic data.

The euro also enjoyed a pre-weekend lift as players rushed to square positions.

Euro-dollar changed hands at $1.2635 in afternoon dealings Friday, the euro in the upper reaches of the day's $1.2592 to 1.2654 U.S. hours range. The euro eased back from its high of the session seen in afternoon dealings.

Dollar-yen meantime changed hands at Y78.71 in afternoon dealings Friday, holding close to its early Y78.74 price. The greenback was stifled inside a negligible Y78.61-80 range during U.S. hours.

US Tsy Offl: Well Prepared For Any Exigencies Post-Greek Vote


--US Treasury's Brainard: Greece Needs To Find Path Forward Within EMU
--White House Official: Europe Situation To Be Central Focus Of G20

WASHINGTON (MNI) - The United States and its partners are "well prepared" no matter the outcome of this weekend's Greek elections, or the impact it has on nervous financial markets, and Group of 20 heads of state next week will want to hear from Europe's leaders how they intend to ramp up efforts to contain the crisis, a senior U.S. Treasury official said Friday.

"Euro area fragility remains the key risk to our recovery and to the global economy," Lael Brainard, the under secretary for International Affairs, told reporters during a briefing previewing the summit in Los Cabos, Mexico next week.

US Swaptions: Ongoing Eurozone Focus Buoy Gamma Volume


CHICAGO, June 15 (MNI) - Over-the-counter swaption volatility opened steady Friday but continued to gain in near end gamma amid much speculation over the Greek election results this Sunday.

US Corporate Bond Chatter: Spds Tighten While Risks Weighed


NEW YORK, June 15 (MNI) - Investment-grade debt supply this week skidded to a halt Friday ahead of near-term key event risks that could raise the flames under the cauldron of Europe's deteriorating debt dilemma and stoke further global uncertainties.

While high grade debt sales ramped-up in the early part of this week, led by a $2 billion, two-part offering from telecommunications giant AT&T Inc, new supply slid to a grinding halt as market participants stepped to the sidelines ahead of the Greek election outcome expected on Sunday.

US Corporate Bond Chatter: Spds Tighten While Risks Weighed


NEW YORK, June 15 (MNI) - Investment-grade debt supply this week skidded to a halt Friday ahead of near-term key event risks that could raise the flames under the cauldron of Europe's deteriorating debt dilemma and stoke further global uncertainties.

Fitch More Optimistic For 2013 US GDP Vs S&P; Sees 3% In 2014


WASHINGTON (MNI) - The latest economic forecasts from rating agencies Standard & Poor's and Fitch Friday show the latter remains more optimistic about U.S. economic growth than its larger rival, especially for next year.

Fitch released for the first time its GDP projection for 2014, expecting the U.S. economy to grow at a pace of 3.0%, slightly more than the 2.9% expected by Standard & Poor's.

The gap between the two agencies' GDP projections is slightly wider for this year: 2.2% for Fitch and 2.0% for S&P.

But the largest divergence is for 2013, when the U.S. GDP growth rate is expected to reach 2.1% by S&P and 2.6% by Fitch's estimate.

Talk From The Trenches: Greece Holds Global Markets Captive


NEW YORK, June 15 (MNI) - The good news on Friday is that the entire world is just that much closer to having the Greek elections finally out of the way.