Stone Street Advisors

Morning Call – 7/27/10

ChiBondKing – laszlochi@gmail.com
Morning Focus
Busy day, 2Y bond auction combined with a ton of macro related news from Asia/Europe. In the US we are anticipating consumer
confidence at 10AM EST (June). Asia was a mixed bag overnight, Australia at 4497 +0.25pct, Nikkei 225 9496 -0.07pct, Hang Seng
20973 +0.64pct, Shanghai 2575 -0.51pct. Europe is currently up at time of publication, CAC40 +1.23pct, DAX +0.77pct, FTSE
+0.90pct.

Ed. Note: I am trying to make this publication more useful. Your feedback (good/bad) helps keep the motivation strong. What do
you want to see more of, what do you want to see less of in this publication. What time do you think we should be releasing this?
Any feedback, suggestions are welcome. If you think we're missing out on something, email me at the address In the header.
Thanks!

Notable Overnight Headlines

Asia
• Japan offers 2.6T Yen in 2Y JGB's with 0.20pct coupon (Reuters)

• EM ASIA DEBT-Spreads at 2-month low; more issuers seen (Reuters)

• China State Construction +6.1%; Strong Order Flow (DJ)

• PetroVietnam To Sell Bonds On International Mkt Later This Yr (DJ) – Refer to BP news for PV

• EM ASIA FX-Won hits 5-week peak; c.banks weigh on peso, baht (Reuters)

• The New Growth Engine, Borat: Kazakhstan's GDP grows 8.0 pct (Reuters)

• Kuwait April CPI +2.8 pct y/y (Reuters)

• Key 10-year JGB yield closes at 7-year low

• Taiwan June Leading Index Edges Down To 114.8 From 114.9 In May

• Singapore visitor arrivals up 26.7 pct in June (Reuters)

• Philippines May Manufacturing Value Up 18.7% On Year Vs. 24.5% Increase In April, May Imports Up 4.9% On Month Vs.
0.2% Fall In April

• China c.bank 1-year bill yield 2.0929 pct at sale (Reuters)

Europe
• ECB Allots EUR189.986B In Main Refinancing Tender At Fixed 1% (DJ)

• German June Import Prices Up 0.9% On Month, Consensus 0.6%

• UBS Q2 operating income of CHF9.19 billion, says it may see more subdued client activity, expects lower portfolio
management fee income (MW)

• Deutsche Bank Q2 pre-tax profit of 1.5 billion EUR (MW)

• Overnight deposits at ECB continue steady rise (Reuters)

 • French 3-month To June Housing Starts Up 2.5%

• Turkey Ctrl Bk: 2010 Inflation Target Revised to 7.5% From 8.4% (DJ)

• Sweden June PPI Up 1.3% On Month, Consensus 0.2%, Sweden June M3 Money Supply Up 2% On Year Vs. 0.3% Increase In
May

• Dutch July business confidence down to -2.4 points

• Euro-zone June M3 sees 0.3% rise, private loans up (MW)

• Hungary ups 3-month T-bill offer, yield edges lower (Reuters)

• Moody's reviews Hungarian covered bonds for possible downgrade (Reuters)

• S. Africa Q2 Jobless Rate At 25.3% Vs. 25.2% In Q1

• U.K. July retail sales volumes jump: CBI (MW)

• Turkish 10-year bond yields 8.98 pct, above forecast (Reuters)

US Pre Open
Equities

• BP: PetroVietnam Mulls Buying Part Of BP Stake In Vietnam Gas Block (DJ), Tony Hayward calls it quits, gets sent to
Siberia - BP to sell up to $30 billion of assets (MW)

• YHOO/GOOG/MSFT -Yahoo Japan may adopt Google's search engine (Reuters)

Interesting Morning Reading

• Recovery Apartheid – Josh Brown “The Reformed Broker”:

http://www.thereformedbroker.com/2010/07/27/recovery-apartheid/

• Mid-Summer Predictions – Eli Radke: http://mytradingnet.com/blog/?p=520

Notable Bond Market/Economic Events

• Bond Auctions (1PM ET)

o 2Y Note

• Upcoming Bond Auctions (This Week)

o 7/28 – 5Y Note

o 7/29 – 7Y Note

• Economic Releases For Today

o 10AM – Consumer Confidence (June) – Consensus 51.3, SSA Estimate 49.9

o 10AM – Richmond Manufacturing Index – Cons. 14

o 9:30PM ET – Australian CPI – Cons. 1.0pct

o 11PM ET – Natl Bank Of NZ Business Confidence
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