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Money markets us commercial paper outstanding falls


´╗┐commercial paper outstanding fell $10.2 billion in the week ended Oct. 10, according to data issued by the Federal Reserve on Thursday. U.S. commercial paper outstanding, not seasonally adjusted, fell $10.7 billion in the week. U.S. foreign bank commercial paper, not seasonally adjusted, rose $900 million. Meanwhile, general collateral repo rates remained elevated as $100 million in Treasury bill auctions settled on Thursday and in anticipation of Monday's settlement of this week's set of coupon auctions.

The government sold a total of $66 billion in three- 10- 30-year Treasuries this week on Tuesday, Wednesday and Thursday, respectively. BAILOUT PROSPECTS KEEP SPANISH REPO RATES STABLE

Meanwhile, the cost of borrowing cash using Spanish government bonds as collateral was little changed on Thursday as the prospect of European Central Bank debt purchases offset the impact of a downgrade of Spain's rating. Standard & Poor's cut the country's rating to BBB-minus, with a negative outlook, just one notch above non-investment grade and in line with fellow agency Moody's, which is expected to conclude its own rating review this month. Usually, when debt is downgraded, rates in repo markets - where bonds are used as collateral to borrow cash - go up. That is because the price of the bond falls and the value of the collateral is perceived as having depreciated.

However, the likelihood that Spain will eventually ask for a bailout kept markets stable."The rates which people are actually lending at have not changed much; (the S&P move) only brings it in line with Moody's ... and the market is much more focused on whether they're going to ask for a bailout or not," one repo trader said. The one-week repo rate for trades using Spanish bonds as collateral was unchanged at 0.15-0.16 percent, according to traders. A well-bid Italian debt auction also helped increase investors' appetite to take risks."Repo rates didn't move because in the short-term risk (sentiment) is still on and the Italian auction was fine," said Matteo Regesta, rate strategist at BNP Paribas.

Press digest sunday british business dec 22


´╗┐LONDON Dec 22 British newspapers reported the following business stories on Sunday. Reuters has not verified these reports and does not vouch for their accuracy. The Sunday TelegraphBANK OF ENGLAND'S BAILEY WARNS OF CONTROLS IF HOUSE PRICE BUBBLE EMERGES Andrew Bailey, deputy governor of the Bank of England has warned authorities could seek to cool a housing bubble by introducing controls such as tougher tests for mortgage applicants and higher bank capital requirements against household lending."We are watching the housing market very carefully. We've laid out the tools that we can use. That is hugely important - that we have set out our desire to see robust mortgage underwriting standards and that will be part of the approach," Bailey told the Sunday Telegraph. BANK LEVY IS UNFAIR, WARNS STANCHART FINANCE DIRECTOR The British government's bank levy, imposed after the financial crisis, is disproportionate and challenging for lenders such as Standard Chartered with most of their operations outside the UK, the bank's finance director Richard Meddings said in an interview."There's something awkward ... or challenging, when the UK Exchequer is taking a levy fundamentally on Singapore deposits being lent to fund Singapore deposits, or Bangladeshi deposits," Meddings said."Standard Chartered pays proportionally more than Lloyds, say, and so I think the structure of the levy is now clearly disproportionate."

UK BROADCASTERS JOIN FORCES TO TACKLE FREE GIVEAWAY OF THEIR PROGRAMMES Britain's BBC, ITV and Channel 4 will lobby in 2014 to make cable and satellite service providers such as BSkyB and Virgin Media pay to carry their channels. Under current rules, introduced in the 1980s to encourage the roll-out of cable networks, Virgin Media pays nothing to public service broadcasters. BSkyB received nearly 10 million pounds ($16.36 million) last year for carrying public service channels. The Sunday Times

RBS PLANS SALARY BOOST TO DODGE BONUS CAP Royal Bank of Scotland is considering raising the basic salaries of some senior executives to compensate for European Union curbs on bonuses due to be introduced in 2014. Tentative negotiations over the pay rises have begun with UK Financial Investments, the body responsible for the government's holding in the bank. PREMIER FOODS PLANNING 300 MLN STG RIGHTS ISSUE

Britain's Premier Foods is poised to launch a 300 million pound rights issue as part of a financial package to tackle debts and fight off Apollo, a Wall Street fund. DIAMOND EYES FIRST AFRICAN ACQUISITION Atlas Mara, a new shell company backed by the former boss of Barclays Bob Diamond, is considering a bid for African Development Corporation, a financial services firm with holdings that include African retail bank BancABC and Union Bank of Nigeria. The Mail on SundayM&S POISED TO OPEN FIRST STORE IN AUSTRALIA British retailer Marks & Spencer is expected to open a store in Australia next year as the country emerges as a new battlefront between leading clothing chains.