Economic News -
Expand AllComtech deal to acquire CPI International nixed
[AP] - Comtech Telecommunications Corp. and CPI International Inc. said Tuesday they were calling off their plan to combine and Comtech will get a termination fee of $15 million.
Utah slashes budget deficit forecast-governor
[at Reuters] - Utah officials have revised their estimate of the state s fiscal 2010 budget deficit to just under $28 million from initial forecasts of between $50 million and $150 million, Governor Gary Herbert s office said on Tuesday.
Ben Bernanke s Big Bazooka Factory Of Fed Policy
[at Forbes] - The pundits claim that the Fed is out of bullets, but Chairman Bernanke has an ordnance factory capable of producing whatever caliber is needed for the task at hand.
Interest rates dip at weekly Treasury auction
[AP] - Interest rates on short-term Treasury bills fell in Tuesday s auction to the lowest levels since late June. The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.135 percent, down from 0.145 percent last week.
[$$] Hedge Funds Cave In to Rallying Treasury Market
[at The Wall Street Journal] - Hedge Funds Cave In to Rallying Bond Market Hedge funds and other speculative investors turned bullish on the benchmark 10-year Treasury notes for the first time in 20 months, as many participants caved in to a rallying bond market.
[$$] Royal Mail s Pension Plan Narrows Deficit With Derivatives
[at The Wall Street Journal] - Royal Mail Pension Plan Narrows Deficit A sophisticated derivatives strategy has helped the pension fund for the U.K. s Royal Mail to make a 29% return on its money last year, reducing the company s deficit and potentially helping along its possible privatization.
UPDATE - Two US Fed banks wanted August discount rate hike
[at Reuters] - Two regional Federal Reserve banks, Kansas City and Dallas, pushed again for a modest increase in the rate charged to banks for emergency loans, according to minutes from an August policy meeting released on Tuesday.
Treasury sell 3-year notes at high yield of 0.79%
[at MarketWatch] - The Treasury Department sold $33 billion in 3-year notes Tuesday at a yield of 0.79%, a record low for an auction. Bidders offered to buy 3.21 times the amount of debt sold, compared to an average of 3.10 times for the past 12 months.
2 Va. broadband projects get stimulus funding
[AP] - Two projects in southwestern Virginia will receive federal stimulus funding to provide high-speed Internet access in rural areas.
U.S. Treasury to sell $60 bln in bills
[at Reuters] - For details of the U.S. Treasury s offering of 4-week bills and 56-day cash management bills offering, please see: 4-week bills: http://www.treasurydirect.gov/instit/annceresult/press/preanre/2010/A_20100907_1.pdf
UPDATE - US Treasury plans warrant auctions for two firms
[at Reuters] - The U.S. Treasury Department said on Tuesday it plans to auction warrants in The Harford Financial Services Group Inc and Lincoln National Corp over the next several weeks, its remaining holdings in the firms.
Treasury to sell Hartford, Lincoln Nat l warrants
[at MarketWatch] - The Department of the Treasury said it will conduct auctions over the next several weeks to sell its warrant positions in The Hartford Financial Services Group, Inc. and Lincoln National Corp. that it acquired through the Capital Purchase Program.
Treasury plans warrant auctions for two firms
[Reuters] - The Treasury Department said on Tuesday it plans the auction of warrants in The Harford Financial Services Group Inc. and Lincoln National Corp. over the next several weeks.