Spanish lenders returning to bonds

[at Financial Times] - Spanish banks that were squeezed out of wholesale finance markets in May have returned in force with a series of bond issues since late July and raised more than $4bn in the first five days of September alone, according to company announcements and figures from Dealogic, the data provider.

UPDATE - Uruguay OKs up to $500 mln in debt buyback

[at Reuters] - Uruguay has approved the purchase of up to $500 million in government bonds as part of its debt management policies, according to a government decree published on Monday.

Financial repression

[at Financial Times] - Investors expect and fear deflation. That, at least, is a common explanation for the current low yields on government bonds. Maybe, but in the US and UK these markets cleared at higher yields during the Great Depression when deflation was actual and sharp, not merely potential.

Government Bonds: Can the U.S. Maintain Confidence in Its Debt?

RPT-GLOBAL MARKETS WEEKAHEAD-Poised for a risk rally?

[at Reuters] - With little fanfare, equity markets have started to rally, investors have become sated with government bonds and cash levels are high enough to prompt a search for better yield.

UPDATE - Market Chatter -- Corporate finance press digest

[at Reuters] - The following corporate finance-related stories were reported by media over the weekend and on Monday: * Kuwait s Burgan Bank , the commercial banking arm of Kuwait Projects Co , is planning a roadshow for a dollar-denominated bond issue soon, Kuwaiti daily al-Rai reported on Monday.

GLOBAL MARKETS-Asia stocks hit 1mth high on US jobs relief

[at Reuters] - * Asia stocks up 0.7 percent; U.S. jobs not as bad as thought * U.S. dollar vulnerable near 15-year low on yen * Gold, government bonds ease

Bad credit? For corporate borrowers, not a problem

[AP] - With rising fears of a prolonged recession and stomach-churning moves in the stock market, corporate bond markets have performed so well this year they look like they re part of a parallel universe.

Do not fall for talk of European solvency

[at Financial Times] - While the Europeans are celebrating the end of the financial crisis, something strange is happening in the bond markets. The gap in the yields - the spread - between the 10-year bonds of peripheral eurozone countries and Germany has been growing at an alarming rate.

Beware the ending of a bond epic

[at Financial Times] - A brutal May, a flat June, a happy July and then a lousy August - the equity markets continue to lurch alarmingly along a directionless path, with every monthly lurch seized on, by those with the strongest views, or at least the loudest megaphones, as evidence that their interpretation of events is right.

Treasury bond market at a glance

GLOBAL MARKETS-Stocks, commodities gain on labor market report

[at Reuters] - * Risk assets rally on jobs report, falter on other data * Dollar falls vs most currencies as risk aversion slips * U.S. bonds fall sharply, then pare losses on ISM report

TREASURIES-Bonds sell off as jobs data eases economy fears

[at Reuters] - * Growth in Aug private payrolls weighs on Treasury prices * Benchmark yields rise to three-week highs * Market eyes supply of 3s, 10s, and 30s due next week

Fitch downgrades outlook on Southern Co.

[AP] - Fitch Ratings has downgraded its outlook for Southern Co., one of the nation s largest electricity distributors, blaming the shaky economic recovery and the risk of some large projects its subsidiaries are taking on.

A.M. Best Downgrades Ratings of Constitutional Casualty Company

[Business Wire] - OLDWICK, N.J.----A.M. Best Co. has downgraded the financial strength rating to D from C+ and issuer credit rating to “c” from “b-” of Constitutional Casualty Company . The outlook for both ratings is negative.

Fitch Rates Paducah Power System s Electric Revs A ; Outlook to Negative

[Business Wire] - NEW YORK----Fitch Ratings assigns an A rating to the following City of Paducah, Kentucky Electric Plant Board revenue bonds:

Fitch Rates Jacksonville, FL s Special Rev Bonds AA ; Outlook Stable

[Business Wire] - NEW YORK----Fitch Ratings assigns a rating of AA to the following Jacksonville, Florida special revenue bonds:

Fitch Affirms Big Rivers Electric Corp, KY s Issuer Rating at BBB- ; Outlook Stable

[Business Wire] - NEW YORK----Fitch Ratings affirms the BBB- issuer rating of Big Rivers Electric Corporation, KY. The Rating Outlook is Stable.

Fitch Downgrades EM Falcon Limited Series 2008-1 to BB-sf ; Outlook Stable

[Business Wire] - CHICAGO----Fitch Ratings has downgraded the notes issued by EM Falcon Limited Series 2008-1 as follows:

Fitch Affs Rtgs & Revises Southern Co s Outlook to Negative; Dwngrs Mississippi Power s IDR to A

[Business Wire] - NEW YORK----Fitch has taken various rating actions on the ratings of Southern Co. , Mississippi Power, and SO s subsidiaries, including affirming the Issuer Default Ratings and debt ratings of SO, and revising the Outlook to Negative from Stable.

British Austerity Policies Aid Corporate Debt

[at New York Times] - British companies are beating the world in the bond market as investors bet Prime Minister David Cameron s efforts to tame the budget deficit will preserve the Britain s top credit rating, Bloomberg News reported.

Fitch Rates Baton Rouge, LA Sales Tax Revs AA+ ; Outlook Stable

[Business Wire] - AUSTIN, Texas----Fitch Ratings assigns an AA+ rating to the following Baton Rouge, Louisiana s sales tax revenue bonds:

A.M. Best Assigns Rating to Aetna Inc. s New Senior Unsecured Notes

[Business Wire] - OLDWICK, N.J.----A.M. Best Co. has assigned a debt rating of “bbb+” to the $750 million 3.95% senior unsecured notes, due 2020 recently issued by Aetna Inc. [NYSE: AET]. The rating outlook is stable.

Fitch Downgrades 1 & Affirms 3 Classes of Orion 2006-1, Ltd./LLC

[Business Wire] - NEW YORK----Fitch Ratings has downgraded and affirmed Orion 2006-1 Ltd./LLC as follows:

Fitch Affirms Motorola s IDR at BBB-/F3 ; Revises Outlook to Positive

[Business Wire] - CHICAGO----Fitch Ratings has affirmed the following ratings on Motorola Inc. and revised the Rating Outlook to Positive from Stable:

Fitch Upgrades Lubrizol to BBB+ ; Outlook Stable

[Business Wire] - NEW YORK----Fitch Ratings has upgraded Lubrizol Corporation s Issuer Default Rating and related debt ratings to BBB+ from BBB . The Rating Outlook is Stable. A full rating list is shown below.

Fitch Rates Alaska International Airport System s $174MM Revs A+ ; Outlook Stable

[Business Wire] - NEW YORK----Fitch Ratings assigns an A+ rating to Alaska International Airport System s approximately $174 million revenue refunding bonds series 2010 issued on parity with the system s outstanding debt.

Fitch Rates Fulton County, Georgia s $167MM GOs AA+ ; Outlook Stable

[Business Wire] - NEW YORK----Fitch Ratings takes the following action on Fulton County, Georgia s general obligation bonds:

Fitch Affirms Rochester Hills, Michigan s GOs at AAA ; Outlook Stable

[Business Wire] - NEW YORK----Fitch Ratings takes the following actions on Rochester Hills, Michigan s bonds as part of its continuous surveillance effort:

Bond Market Update: 03-Sep-10 07:59 ET

Bond Market Update