Rising  peripheral bonds yields not helping the cause and  USD/JPY’s failure to get a toe-hold above 80.00 is leading to the cross targeting  the earlier mentioned  sell stops through 99.50.

EUR/JPY’s currently sitting around 99.62

More bids lie down at 99.00/10 with sell stops poised on a break

Target 2.5-3.5 bln euros.

Sells 1239 mln euros in 2015 bond. Cover 2.3 from prev 3.2.  Average yield 5.086% from prev 5.457%

Sells 1015 mln euros in 2016 bond. Cover 2.6 from prev 2.6. Average yield 5.536% from prev 5.353%

Sells 747 mln euros in 2022 bond. Cover 3.2 from prev 3.3. Average yield 6.430% from prev 6.044%

-June Car Manufacturing Up 3.5% On Year; Up 2.7% In H1

LONDON (MNI) – UK car registrations continued to rise in June,
posting their fourth consecutive monthly increase.

Car registrations were up 3.5% on the year in June and up 2.7% over
the first half of the year. New registrations are still well below their
pre-financial crisis levels but have shown steady, if modest, growth so
far this year.

The 3.5% rise in June took car registrations to 189,514, some 15%
below the level in June 2007 but, according to SMMT, some 2.5% above
average June volumes for 2009 through 2011.

Recent UK motor manufacturing output data have shown very sharp
rises on the year but these have been distorted by base effects, with
motor manufacturing in 2011 hit by supply disruption due to the Japanese
tsunami. Registrations, instead, have painted a picture of modest growth
in demand.

“Despite domestic and international economic concerns, UK motorists
are responding positively to new products and the latest fuel-efficient
technology. The industry has performed better than expected in the first
half of the year,” SMMT Chief Executive Paul Everitt said.

-London newsroom: 4417 862 7491 e-mail: drobinson@marketnews.com.

[TOPICS: M$BDS$,M$B$$$,MABDS$]

Reuters reporting.

Better hurry up pumpkin, market seems to need some more reassuring…….

If anyone gives a shit.

We expect the Old Lady to increase QE by £50 bln (should do more, but think they’re going to take a conservative approach)

We expect ECB to cut main interest rate 25 bps, from 1% to 0.75%.  May possibly tinker with deposit rate which presently sits at 0.25%.

We expect no move on further LTRO for time being.

We expect no restoration of SMP for time being.

We’d like to see the ECB be more aggressive, but have pretty much given up hope on that front.

We think BOE QE of £50 bln and ECB cut of 25bps are pretty much fully discounted in present EUR/USD and GBP/USD rates.

Just been told  a central bank was picking up a few around the 1.5590 level just now,   There’s also bids below in the 1.5550/60 zone with sell stops positioned on a break.

GBP/USD’s sitting around 1.5593

–House Prices Up 1% m/m In June; Down 0.5% 3m y/y

LONDON (MNI) – UK house prices rose 1% on the month in June but
still exhibited slight deflation on a yearly basis, according to a
Halifax survey.

House prices in June were down 0.5% on a 3 month year-on-year basis
and down 0.3% in the three months through June on the previous three
months. The data conform to the trend of volatile monthly moves and
gentle deflation on the year.

“House prices continue to fluctuate on a monthly basis with an even
number of falls and rises over the past year,” Martin Ellis, Halifax’s
housing economist, said.

Ellis noted that the housing market appears to have stabilised. In
May 2011, house prices were down 4.2% on the year but in the most recent
three Halifax surveys yearly house price changes have been in a 0% to
-0.5% range.

The May Halifax survey showed house prices up 0.5% on the month and
down 0.1% on the year.

The expiry of the two year long stamp duty (property transaction
tax) holiday for first time buyers in March was cited by Halifax as a
factor distorting the market early this year. Activity, however, now
appears to have recovered. with sales in June running a little higher
than a year ago, Halifax said.

-London newsroom: 44207 862 7491; email drobinson@marketnews.com

[TOPICS: M$B$$$,MABDA$,MABDS$]

Around the 1.0270 level i’m told , but it’s a slog in a tight range with the dip  also stalling  into the early mentioned MA’s around 1.0257

We’re back around 1.0265 now

Spanish up 11 bps on day, presently at 6.52%.

Italian up 7 bps, presently at 5.83%.

Spain going to the trough later this morning.

Auctioning 2015 and 2016 bonos, 2022 obligacion

Total target amount 2.5-3.5 bln euros.

Results due around 08:40 GMT.

UK DATA: Halifax UK June house prices 1.0% m/m; -0.5% 3m y/y

Better than expected Reuters poll of -0.2%

Fell -0.05% y/y in 3 months to June (expected -0.8%)

Cable’s holding steady around 1.5610

Both averages are converging  around the 1.0257 level which is  helping prop up the pair with a bit of help from EUR/AUD which is struggling to rally beyond 1.2230 despite a round of short covering in early Asian today.

AUD/USD bids are cited  down from 1.0260 to 1.0240 from real money and sovereign names, and more bids lie ahead of 1.0200 with sell stops below and through 1.0180. Offers  start from 1.0310 and run up to 1.0330 which may include some commercial sales from the RBA

EUR/AUD support comes in around yesterday’s lows  around 1.2169 and then  around the Feb lows of 1.2135/45, which could be challenged if the  ECB cuts and adds further easing

AUD’s sitting around 1.0269, with the cross  hovering just above 1.2205

– Adds Background in Paragraphs 6-9, Osaka Branch Manager Comments At
Bottom

TOKYO (MNI) – The Bank of Japan said on Thursday that all of the
nine regions in Japan upgraded their regional economic views from three
months ago, with many pointing to a recovery or pick-up.

“Compared with the last assessment in April, all regions reported
that their economic assessment had generally improved from the previous
report,” the BOJ said in its quarterly regional economic report.

“Specifically, many regions noted that the economy had been
recovering moderately or picking up, while some regions noted that the
economy continued to pause generally although there were signs of
picking up.”

It is the first time since October 2009 that all of the nine
regions have upgraded their economic assessment from three months
earlier.

The BOJ said in April that two out of the nine regions revised up
their economic assessment from three months before and the remaining
seven regions left their assessment unchanged.

The regional report is consistent with the results of the June
Tankan corporate sentiment survey released on Monday.

The BOJ’s closely watched Tankan business sentiment survey released
on Monday showed that confidence among large manufacturers improved in
June from three months ago for the first time in two quarters.

The Tankan survey headline index — showing current business
sentiment among large manufacturers — improved to -1 in June from -4 in
March.

The improvement of the headline figure was helped by the
government’s renewal of subsidies for buying low-emission vehicles,
demand for rebuilding the earthquake-hit northeastern region, and lower
energy costs.

The July report also showed that the assessment of major individual
economic components was somewhat upgraded from April.

“As for business fixed investment, eight regions reported that it
was picking up or increasing,” the BOJ said. “Seven regions reported
that private consumption had continued to increase, was picking up, or
had been firm.”

On production, two regions said it was increasing, four regions
reported a pick-up, and two noted that there were some signs of picking
up.

“Many regions reported that improvement had been observed in the
employment and income condition, although severity remained,” the BOJ
said.

At its next policy meeting on July 11-12, the BOJ board will review
their medium-term forecasts for growth, inflation and risks based on the
regional report and various economic data.

Managers from the BOJ’s 32 domestic branches and two general
managers from the U.S. and Europe gathered here on Thursday for a
one-day quarterly meeting to discuss economic and financial conditions.

BOJ Osaka branch manager Masayoshi Amamiya, who is also one of the
six executive directors supporting the governor, told reporters that the
impact of reconstruction-related demand and the recent recovery in auto
output on Osaka and neighbouring cities in the western Japanese
commercial hub is relatively small, compared with other regions.

“Therefore, we maintained the word ‘pause’ in our economic
assessment,” Amamiya said.

The assessment of his region was upgraded from April but the
latest report said, “The economy continues to pause generally, although
there are signs of picking up.”

Amamiya said he will continue to closely watch whether bright signs
will expand in the coming months, while paying attention to developments
in overseas economies, foreign exchange rates and international
commodity prices.

He added that a careful watch should be paid to how the expected
electric supply shortage this summer will affect economic activity.

Amamiya also noted that a recovery of the Chinese economy is
necessary for his region to improve as the share of its exports to China
is relatively high.

He added that businesses in his region are sensitive to adverse
effects of the yen’s rise against the dollar, the euro and the
Korean won.

tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4833 **

[TOPICS: M$J$$$,M$A$$$,MMJBJ$,MAJDS$]

LONDON (MNI) – Ratings agency Moody’s Investor Services have cut
the outlook for Barclays Bank PLC to negative in the wake of senior
management resignations. The full text of Moody’s text follows.
=======================================================================

Moody’s changes outlook on Barclays’ standalone rating to negative

Debt ratings unchanged at A2/P-1

London, 05 July 2012 — Moody’s Investors Service has today changed
the outlook on the C-/ baa2 standalone bank financial strength rating
(BFSR) of Barclays Bank plc to negative from stable. The C-/ baa2
standalone BFSR as well as the A2 long-term and Prime-1 short-term debt
ratings remain unchanged. The A2 senior debt and deposit rating already
has a negative outlook due to Moody’s expectation that the UK government
will reduce its support for large UK banks over the medium term. Today’s
action extends this negative outlook to Barclays’ standalone BFSR rating
and the bank’s subordinated debt and junior capital instruments, which
are notched off the standalone rating.

RATIONALE FOR NEGATIVE OUTLOOK

Moody’s decision to change the outlook on Barclays’s C-/ baa2
standalone rating to negative from stable reflects the rating agency’s
concerns that the senior resignations at the bank and the consequent
uncertainty surrounding the firm’s direction are negative for
bondholders. Specifically, the shareholder and political pressures on
Barclays, which resulted in the resignation of the bank’s CEO, COO
(previously the head of the investment bank) and the stated intention of
the Chairman to resign, could lead to broader pressure on the bank to
shift its business model away from investment banking and reform
perceived failures in its business culture. Although this could have
potentially positive implications over the longer term, the uncertainty
surrounding such a change in direction is credit negative in the short
term. In addition, Moody’s believes that the bank could be challenged to
replace the three senior staff and in particular find a new CEO who not
only has a sufficient understanding of the investment banking business
to run Barclays, but also has the credibility and ability to swiftly
address the weaknesses that the LIBOR incident revealed and
stakeholders’ perceptions of the investment bank.

Moody’s believes that these concerns are mitigated to some extent
by Barclays’s broad and strong management team, which provide the firm
with stability and continuity whilst a new CEO and subsequently a
Chairman are appointed, and limit the scope of today’s action to a
change in outlook.

More broadly, Moody’s incorporated the investment banking
industry’s propensity for failures in the control environment into the
rating actions taken on 15 large firms with global capital markets
operations on 21 June 2012, including the two-notch downgrade of
Barclays to A2 from Aa3 (please refer to “Moody’s downgrades firms with
global capital markets operations”). Moody’s also commented on the
industry-wide nature of the breakdown of controls highlighted by the
ongoing investigations into the manipulation of the Libor rate in
“Moody’s Comments on Barclays’ LIBOR Settlement”, published on 29 June
2012. With Barclays’ standalone rating at baa2, the bank’s ratings are
positioned to absorb a certain amount of volatility. Consequently it is
the disruptive management changes facing Barclays, rather than the
outcome of last week’s LIBOR investigations, that are the key driver for
today’s rating action.

WHAT COULD MOVE THE RATINGS UP/DOWN

Moody’s says that Barclays’ senior debt and standalone ratings
could experience further downward pressure if the bank proved to be
unable to restore a stable management structure over the coming months;
or if there are indications that the current developments were to have a
financial impact sufficiently large to put pressure on capital ratios
and/ or negative implications for the bank’s business model.

Given the negative outlook, any upward ratings movement is
currently unlikely; however, the standalone rating could be stabilised
if Barclays is restores a stable management structure.

–London newsroom: 00 44 20 7862 7499; e-ml: ukeditorial@marketnews.com

[TOPICS: M$B$$$,M$BDS$,M$$FI$,MT$$$$,M$$BE$]

• Has concerns that the senior resignations at the bank and the consequent uncertainty surrounding the firm’s direction are negative for bondholders
• Senior debt and standalone ratings could experience further downward pressure if bank proved unable to restore a stable management structure over the coming months
• The standalone rating could be stabilised if Barclays restores a stable management structure

Don’t ya just hate it when that happens 

TOKYO (MNI) – The Bank of Japan said on Thursday that all of the
nine regions in Japan upgraded their regional economic views from three
months ago, with many pointing to a recovery or pick-up.

“Compared with the last assessment in April, all regions reported
that their economic assessment had generally improved from the previous
report,” the BOJ said in its quarterly regional economic report.

“Specifically, many regions noted that the economy had been
recovering moderately or picking up, while some regions noted that the
economy continued to pause generally although there were signs of
picking up.”

It is the first time since October 2009 that all of the nine
regions have upgraded their economic assessment from three months
earlier.

The BOJ said in April that two out of the nine regions revised up
their economic assessment from three months before and the remaining
seven regions left their assessment unchanged.

The July report also showed that the assessment of major individual
economic components was somewhat upgraded from April.

“As for business fixed investment, eight regions reported that it
was picking up or increasing,” the BOJ said. “Seven regions reported
that private consumption had continued to increase, was picking up, or
had been firm.”

On production, two regions said it was increasing, four regions
reported a pick-up, and two noted that there were some signs of picking
up.

“Many regions reported that improvement had been observed in the
employment and income condition, although severity remained,” the BOJ
said.

At its next policy meeting on July 11-12, the BOJ board will review
their medium-term forecasts for growth, inflation and risks based on the
regional report and various economic data.

Managers from the BOJ’s 32 domestic branches and two general
managers from the U.S. and Europe gathered here on Thursday for a
one-day quarterly meeting to discuss economic and financial conditions.

tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4833 **

[TOPICS: M$J$$$,M$A$$$,MMJBJ$,MAJDS$]

EUR/USD:  Bids 1.2500/10 (sovereigns), sell stops below, offers 1.2550/60

GBP/USD:   Offers 1.5600/10 (possible buy stops above), ahead of tech res 1.5640/50.   Tech sup level 1.5575 (61.6% retrac of week's rise). Bids 1.5550/60 sell stops below ahead of more bids, 1.5500/10, sell stops below before  strong tech supp 1.5485/90

EUR/GBP:  tech supp 0.8010/15 (Fri lows) ahead of bids 0.7990/00, barriers below at 0.7950 and 0.7900, large sell stops through both. Offers 0.8035/45 and tech res 0.8050/65 (0.8050/63- 21/55 day MA's) ahead of strong res 0.8090/00

USD/JPY:   Strong offers 79.80/00 from exporters, sovereigns , buy stops through 80.10 ahead of offers 80.40/50 and larger buy stops through 80.65, Bids from 79.50/70, sell stops through 79.50 ahead of more bids 79.20 down to 79.00 (talk of semi official interest). Sell stops through 79.00

EUR/JPY:   Offers 100.50/60 and 100.80/00, tech res 101. 20/30, sell stops through 99.80 ahead of bids 99.50/60, stops below again ahead of bids 99.00/10

AUD/JPY:  Bids 81.80/90 sell stops through 81.70 ahead of tech supp 81.15/25 and 200 day MA at 80.95, Offers 82.20/30, buy stops through82.80

EUR/CHF: Bids 1.2000/10(SNB), Offers 1.2025/50 buy stops through 1.2055

AUD/USD: Bids 1.0240/60 (100/200 day MA's 1.0256/57) and 1.0200/20 sell stops below through 1.0200 and 1.0180, strong offers and tech res 1.0310/30.

EUR/AUD:  Tech support 1.2170/80 and 1.2145/50, tech res 1.2265/75 and 1.2290/00

AUD/NZD: Bids 1.2740/50 and 1.2700/10, offers 1.2810/20

NZD/USD:  Sell stops down through 0.8000, Bids 0.7960/70. Offers 0.8055/65

USD/CAD: Bids 1.0115/25 (tech support 1.0118-(200 day MA) and 1.0050/60, offers 1.0160/70 and 1.0190/00

• First time since October 2009
• Many regions said economy recovering moderately or picking up

The ex-forex trader told reporters at a business lunch in Sydney “It’s been my long held view that at 80 cents its a little high but the government is powerless to do much about that other than to take the pressure off interest rates with sound fiscal policy.”

Bless, you can take the man out of the markets, but you can’t take the markets out of the man.