Truth In Advertising?

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Ken O’Brien
Forgive me for being somewhat of a skeptic by nature.
But, when someone makes a claim that surprises me, I am inclined to question it.
The most recent incident of this occurred today.
In the course of reading the Friday, May 25, 2012 edition of the Southbridge Evening News, I came across a promotional ad on behalf of the newspaper on its editorial page beneath the letters to the editor.
Here is that notice: 

Now, in the first place, TheHeartOfMassachusetts.com is the main web page for all twelve of Stonebridge Press’ publications, not just the Southbridge Evening News.
Even given this, if they have over 25,000 unique hits per week, someone who measured unique hits on a monthly basis would come up with at least that many unique hits for the month.
However, when I visited a site that specializes in reporting such data, this is the result that I got:



























To clarify, here is the scale enlarged:


I have inserted the description of how Siteanalytics.compete.com measures unique visitors in place of some promotional materials.
I think that if the paper is going to make such a claim, they should at least provide the source of their data.

Memorial Day 2012

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Ken O’Brien

Yesterday, May 25, 2012, Vice President Joe Biden spoke to survivors of fallen military members. He remarked how one of his sons had returned from a tour of duty in Iraq. Then he added that his joy was tinged with guilt that he had returned home whole, while so many others had not.
The vice president recounted the difficulty of dealing with the death of his wife and daughter in a car accident in the early seventies. He said it was it was the first time that he could understand how someone would consciously decide to commit suicide.
It is an emotional and deeply felt message that should bring home to all of us the grief felt by those who have lost a loved one in the service of their country. It is also a message of hope and the need to endure to those who have suffered such a loss.

Southbridge Schools Lose Another Arbitration Case

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Ken O’Brien
Following the report by The O’Zone regarding the arbitration decision in the case of Jonathan Jacobson, the results of another case have come to our attention.
On September 29, 2011, Timothy Bornstein, Arbitrator for the American Arbitration Association rendered a decision in AAA Case 11 390 01501 10, A Salary Schedule Grievance between the Southbridge Education Association and the Southbridge Public Schools. 
The core of the dispute related to the contract provisions for the second and third years of the 2009-2012 teachers contract.
The Southbridge Education Association (SEA) maintained that in years two and three of the contract that they were to receive a 1% salary increase while having one professional development day deleted from their schedule with no reduction in pay.
The school administration maintained that it had been agreed that in years two and three there would be a 1% salary increase and that one professional development day would be deleted from their schedule and that the teachers would not be paid for that day.

The decision of the arbitrator was as follows:
“The agreed-upon salary schedules for the second and third years of the collective bargaining agreement shall be shall be the same as the base salary for the first year of the 2009-2012 contract, increased by one percent.In the second and third years of the 2009-2012 contract, one August professional development day shall be deleted from the contract, without a reduction in salary.”
In essence the arbitrator upheld the position of the SEA. It is estimated that this decision carries a cost in the vicinity of $100,000 in years two and three of the contract.
Subsequently the Southbridge School Committee requested that the SEA reject the arbitration decision.
In a strongly worded response dated October 24, 2011, SEA President David Williams took the administration to task. That letter said in part, “Stating that without us agreeing to refuse compensation would mean a layoff of our members goes beyond contempt. It was the school committee that put the District in this position! Throughout this whole process, the School Committee refused all our attempts to cooperate and made none of your own. It is only after the arbitrator’s ruling that you are in anyway concerned about money being spent. How much did you spend in lawyer fees fighting us while we were offering a way for the District to keep all the compensation?  The words that describe your actions should not be used in professional communications.”
The copy of the decision was provided to The O’Zone following opinions to the releasing authority by both the American Arbitration Association and the Massachusetts Teacher’s Association that such reports became public documents ten days after their issuance.

The Sum Of All Facts

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Ken O’Brien
Back in April, after the hoopla regarding the O'Zone's publication of the Arbitration decision in the case of Jonathan Jacobson, I conducted a poll of readers regarding whether the current principal of Southbridge High should stay or go.
At the conclusion of the article reporting the results of the poll, I wrote the following; “My prediction; I’ll end up being the villain in this black comedy.”
Yesterday I encountered an old friend (I’m talking a friend of over 40 years). We share a number of friends, many of whom are intimately involved in this affair. 
He criticized me for going after my friends and trying to hurt them. When I tried to explain the situation his attitude was that you shouldn’t be disloyal to your friends.
Now, I know that this friend doesn’t have a computer, so he doesn’t read what I write. He gets his information from people who talk to him and from the local paper. He was told that I was being manipulated by “the other side” in the school committee controversy.
Today another acquaintance active in school affairs warned me that I was going to lose a lot of friends over this.
It is clear that a number of people with whom I’ve enjoyed a close relationship over the years are now decrying me as being disloyal and seeking to hurt them in the upcoming election.
I am disappointed by this. I challenge any of these critics to show where I have expressed an opinion on these issues. I have published the facts as I have come to know them. I have repeatedly offered a forum to those who disagree with me or the factual nature of what I have published.
What I have expressed an opinion on is the right of the public to have this information, especially prior to an election. Good government should not be a function of the buddy system – in fact it rarely is. Someone who would make a friendship contingent upon agreement over matters of policy is insincere and shallow. Such people have no place in government or public life, because their conduct eventually comes to be dominated by venality and vindictiveness. Neither of these fosters the well-being of the community.

I most certainly have not engaged in character assassination, a matter that Brent Abrahamson has addressed with stark irony. If anything, that is precisely what I am being subjected to.
I hope that such people will realize that I take responsibility for what I write. I do it openly and publicly, not in whispered undertones behind closed doors to coffee shop and bar patrons. I do not take responsibility for the opinions expressed by others, except to the extent to which they violate the guidelines I have laid down for them.
Anything more that needs to be said on this subject I’ve written in an earlier article titled “Let’s Kill The Messenger”.

Southbridge Police Union Votes “No Confidence” In Chief

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Ken O’Brien
The O’Zone has received confirmation from multiple sources that the Southbridge Police Association recently took a vote of “no confidence” in Southbridge Chief of Police Daniel Charette.
Indications are that the final text of the union’s statement is being reviewed prior to a formal public release.
The action will undoubtedly pose a difficult situation for town manager Christopher Clark who is the Chief’s immediate superior. Regardless of the specific grounds for the resolution, the fact is that any police department is in essence a paramilitary organization. The loss of confidence in a superior officer poses serious issues of morale as well as discipline.
More details will be forthcoming as they become available.



UPDATES: 9:15 am – 5/30: An additional preliminary report indicates what was actually termed a vote of “no faith” in the chief carried by a vote of 15 to 0.

Immigration Reform Proposal

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Dear Mr.Kenney and Mr.Chan,
It was my pleasure to have a lovely conversation with both of you last night. I have been truly surprised that mr.Chan said that Canada does not have [enough] tourists because of Mr.Kenney. Mr.Kenney sais that he never heard of visa problems, specifically in Moscow where it takes 6 weeks to get a single entry visa. In Moscow where you might be questioned like a criminal. In Moscow, where your open US and European visa won't help you to get a visa to Canada. In Moscow, where they suspect you apriori. So I propose to retire the old approach and bring a fresh one to life.

I have done my homework and wrote a letter to both Ministers, with my idea of changes in immigration program. I believe when people won't be forced to lie, our society will benefit greatly. So, here's my letter:


To the Jason Kenney, PC, MP, Minister of Citizenship, Immigration and Multiculturalism
To the Michael Chan, MPP, Minister of Tourism, Culture and Sport
Toronto, April 5th. 
I've been worried about number of refugees coming to Canada. Most of those people are not refugees, they simply try to stay in Canada by any possible means. The only way available for them now is to apply for a refugee protection status.

This is completely unfair and abusive scheme, since most of the people after receiving refugee status in Canada are starting to receive support benefits from the Government of Canada.

Let me introduce my idea, which we might call as Travel and Work Program. I propose this idea as a way to select the smartest and most socially smart people, as well as bring unique knowledge and skills to Canada. This program will not affect local job market and will not abuse the system. Here's 5 simple steps for the possible new age immigrant:

1. Get the entry [tourist] visa;
2. Upon arrival within 7 days exchange your status to the intermediate status, something like a "person in transformation period", which will be valid for ~3 months;
3. Sign your goodwill leave order;
4. Travel around the country, try to get connected and try to get a full time job;
3. Get a full time job offer with a minimal wage of 30K/year;
4. Apply for the exchange of your status to your new worker status, which will be valid for 2 years;
5. Extend your status for another 2 years or get PR status in Canada;

This is very clear and transparent scheme. It will bring more tourists (I assume the visa requirements will be lowered) and will provide Canada with skilled workers who can benefit from real meetings and interviews. Most of the people will spend in Canada all the money they will bring and earn here, which will lead to the real GDP growth.

Sincerely,
sign/me


What do YOU think about this proposal?


PS. I've been told that as a result Canada will face lots of illegal immigrants, lots of employment fraud, and black market. I would like to clarify things:
-with the modern technologies you can trace and detect all the scams easily;
-we still have our police and immigration [police] services;
-we still have to check background of people entering our land;
-it won't hurt the economy if Russians will spend thousands in Yorkville and while fishing at G20th Deerhurst eating maple syrup glazed salmon;

Bixi Rental Price Chart

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Still, I have realized that lots of people can not read mathematical formulas written in sentences. 
So, when I explained how much "rent a bike for $5 a day" really cost, they didn't really get it. My  

I would like to offer you a chart, which will clearly give you price structure. I would like to propose those charts have been placed on each bixi rental stands. 


I. Imagine, you are rich and paid $95 for your yearly memberships (still unclear about deposit). Your price will be: 


30 min - FREE
1 hr   - $1.5
1.5hr - $4
2hr    - $122.5hr - $203hr   -  $283.5hr - $364hr    - $44
4.5hr - $52
5hr    - $60
5.5hr - $68
6hr    - $76
6.5hr - $84
7hr    - $92
7.5hr -$100 




Now, same chart with $5 daily 



30 min - FREE (with a $5 membership, so, it's basically $5)
1 hr   - $5.5
1.5hr - $9
2hr    - $172.5hr - $253hr   -  $333.5hr - $414hr    - $49
4.5hr - $57
5hr    - $65
5.5hr - $73
6hr    - $78
6.5hr - $89
7hr    - $97
7.5hr -$105 





Please, do not forget that $250 security deposit, max 2 per credit card (held for every day you rent!) will be held for 10 (business?) days. 


Once again, I love the idea of BIXI, I love the possibilities but it's cheaper to get a zipcar. 

Mute Swans are under attack in Toronto

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In 1967, Her Majesty, Queen Elizabeth II, gifted Canada with six pairs of Mute (Royal) Swans in celebration of Canada's 100th birthday. Now city decided that nobody needs them any longer. 
Please, sign petition and help us to protect beautiful Whyte Royal Mute Swans.





SIGN THE PETITION Global News piece: http://www.globaltoronto.com/video/mute+swans/video.html?v=2219489038#stories PLEASE SIGN THE PETITION
Stanley Whyte
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Personal Income Tax Rates For Canadians 2012

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Federal tax rates for 2012

• 15% on the first $42,707 of taxable income, +
• 22% on the next $42,707 of taxable income (on the portion of taxable income over $42,707 up to $85,414), +
• 26% on the next $46,992 of taxable income (on the portion of taxable income over $85,414 up to $132,406), +
• 29% of taxable income over $132,406.

The chart below reproduces the first calculation that has to be made on page 2 of Schedule 1 of the tax package to calculate net federal tax. Page 1 is used to calculate federal non-refundable tax credits.

Federal tax on taxable income manual calculation chart

	Use this column if your taxable income is$42,707 or less	Use this column if your taxable income is more than $42,707, but not more than $85,414	Use this column if your taxable income is more than $85,414, but not more than $132,406	Use this column if your taxable income is more than $132,406
Enter your taxable income from line 260 of your return					1
Base amount	−        0	−     42,707	−    85,414	−  132,406	2
Line 1 minus line 2 (this amount cannot be negative)	=	=	=	=	3
Federal tax rate	×    15%	×      22%	×      26%	×      29%	4
Multiply the amount on line 3 by the tax rate on line 4	=	=	=	=	5
Tax on the amount from line 2	+       0	+      6,406	+    15,802	+    28,020	6
Add lines 5 and 6	=	=	=	=	7

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Top of Page

Provincial/territorial tax rates for 2012

Under the current tax on income method, tax for all provinces (except Quebec) and territories is calculated the same way as federal tax.
Form 428 is used to calculate this provincial or territorial tax. Provincial or territorial specific non-refundable tax credits are also calculated on Form 428.
For complete details, see the provincial or territorial information and forms in your 2012 tax package.

Provincial/territorial tax rates (combined chart)

Provinces/territories	Rate(s)
Newfoundland and Labrador	7.7% on the first $32,893 of taxable income, + 12.5% on the next $32,892, + 13.3% on the amount over $65,785
Prince Edward Island	9.8% on the first $31,984 of taxable income, + 13.8% on the next $31,985, + 16.7% on the amount over $63,969
Nova Scotia	8.79% on the first $29,590 of taxable income, + 14.95% on the next $29,590, + 16.67% on the next $33,820, + 17.5% on the next $57,000, + 21% on the amount over $150,000
New Brunswick	9.1% on the first $38,190 of taxable income, + 12.1% on the next $38,190, + 12.4% on the next $47,798, + 14.3% on the amount over $124,178
Quebec	See Income tax rates (Revenu Québec Web site).
Ontario	5.05% on the first $39,020 of taxable income, + 9.15% on the next $39,023, + 11.16% on the amount over $78,043
Manitoba	10.8% on the first $31,000 of taxable income, + 12.75% on the next $36,000, + 17.4% on the amount over $67,000
Saskatchewan	11% on the first $42,065 of taxable income, + 13% on the next $78,120, + 15% on the amount over $120,185
Alberta	10% of taxable income
British Columbia	5.06% on the first $37,013 of taxable income, + 7.7% on the next $37,015, + 10.5% on the next $10,965, + 12.29% on the next $18,212, + 14.7% on the amount over $103,205
Yukon	7.04% on the first $42,707 of taxable income, + 9.68% on the next $42,707, + 11.44% on the next $46,992, + 12.76% on the amount over $132,406
Northwest Territories	5.9% on the first $38,679 of taxable income, + 8.6% on the next $38,681, + 12.2% on the next $48,411, + 14.05% on the amount over $125,771
Nunavut	4% on the first $40,721 of taxable income, + 7% on the next $40,721, + 9% on the next $50,964, + 11.5% on the amount over $132,406

Does your RRSP on the edge of scam?

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I had a meeting last night with a lovely people selling all kinds of insurance. I've been talking about my long term and short term needs, investment vs. insurance and all about. As usually, the truth is came when you didn't expect it.

I have been curious about obsession of many Canadians to invest all possible money for the retirements. I heard something about RRSP and new that all the people around me contributing to the fund. RRSP stands for Registered Retirement Saving Account and you can read all the official information here I have got an impression of the following:

1. "Tax free" is not really tax free. It means that you have a delay of paying your taxes on the invested sum. I.e. you will pay taxes when you withdraw money from this account. How much? As much as your regular rate. You have an option to take as much as 5 dollars or as much as half million.

2. Your responsibility after death. If you die with a chunk of money sitting in your RRSP your spouse can get it transferred to her account "tax free", which still means that she/he will pay taxes upon withdrawal. If you are lucky enough and dead at the same day with your spouse your siblings or other people who will receive your money based on your will will pay.... ALL THE TAXES at once.

3. Interest on your investment. You will have to pay taxes on all interests you will receive from your investments. Usually, contributions to RRSP will not bring you much. So, automatically you will directly loose money on inflation rate. In 2011 inflation rate was 2.94%.

Now the math.

Let's say you want to invest/accumulate $100 (hundreds, thousands, millions) to RRSP in 10 years, and the average inflation rate is 2,1%. Your dividends might be as much as 0.1%. Therefore we simplify your yearly loses by combining inflation rate with dividends: %2.1 - %0.1 = %2 - of your net yearly looses.

In ten years you will loose 20%, which will leave you in bank with buying power equivalent of $80. Still you need to pay taxes on $100, which will be another 20% or $20. After everything paid you'll receive $60 from a contribution of $100.
 My proposal - give me $100 and get $90 back guaranteed in 10 years :) 

Second, non RRSP option.

You pay your taxes (same 20%) in front and invest your money in stable funds/bond/shares with dividends of 4% a year for 10 years. Your investment of $100 after paying 20% taxes will be $80.

Every year you will receive $3.6 (and I am not talking that you might invest your dividends to the same fund). You still have to pay taxes from that $3.6, which will be $0.72. So, the pure income will be $2.88 or $28.80 in 10 years.

 $100+$28.80 = $128.80
 With correction on inflation rate will give you buying power of: $128.8 - 21% = $102.04

$102.04 vs $60. What would you choose? 
Solution? Always simple. Retire the old scheme and get new age economics working for the country. I will share my vision on pension reform soon.

I would like to add that RRSP are working good if you receive contributions from your work - sometimes as a bonus they match the amount of your contribution to the plan. Also you might use your RRSP funds as a downpayment for "qualified real estate" which might be a good option for a first "qualified" home buyers.
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Japan Stock Futures Drop may 7 2012

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Indonesia stock info, Japan Stock Futures Drop may 7 2012, crude oil prices, Japan’s Nikkei 225, aluminum prices, MSCI Asia Pacific Index (MXAP) ; Japanese and Australian stock futures fell amid growing concern over Europe’s debt crisis after Socialist Francois Hollande was elected president of France and Greek voters flocked to anti-bailout parties.

American depositary receipts of Nissan Motor Co. (7201), a carmaker that gets almost 80 percent of its revenue overseas, sank 3.4 percent from the closing share price in Tokyo. Those of Canon Inc. (7751), a camera maker that depends on Europe for almost a third of its sales, lost 2.2 percent after the euro fell against the yen, cutting the exporter’s earnings outlook. ADRs of BHP Billiton Ltd. (BHP), the world’s No. 1 mining company, slid 1.7 percent after prices for oil and metals slipped.

Futures on Japan’s Nikkei 225 Stock Average expiring in June closed at 9,150 in Chicago on May 4, down from 9,220 in Singapore. Japanese markets were closed on May 3 and 4 for national holidays. They were bid in the pre-market at 9,140 in Osaka at 8:05 a.m. local time. Futures on Australia’s S&P/ASX 200 Index lost 1.2 percent today. New Zealand’s NZX 50 Index fell 0.2 percent in Wellington.

“There’s concern that the European debt problem may get serious. The euro is being sold in the currency market and that’s negative for Japanese stocks,” said Toshiyuki Kanayama, a market analyst at Tokyo-based Monex Inc. “In the U.S., the job recovery is getting sluggish, fueling concern that may have a bad impact on consumer spending and housing markets.”

U.S. Employment
Futures on the Standard & Poor’s 500 Index (SPX) fell 1.1 percent today. The index sank 1.6 percent in New York on May 4 after a report showed payrolls climbed 115,000 in April, the smallest gain in six months and below economists’ estimates for a 160,000 advance. The jobless rate unexpectedly fell to a three-year low of 8.1 percent as people left the labor force. Concern about Europe’s debt crisis also pushed stocks lower as services and manufacturing output in the euro region shrank.

The euro fell to its lowest level against the yen in almost three months low as Socialist Hollande was elected president and Greek voters flocked to anti-bailout parties, stoking concern austerity efforts in Europe may be derailed.

The euro weakened to as low as 103.24 yen today in Tokyo, compared with 106.20 yen at the close of stock trading on May 2. The dollar also depreciated to 79.67 yen from 80.37 yen, cutting the value of some overseas income at Japanese companies when repatriated.

Crude Below $100

Oil fell below $100 a barrel for the first time since February. Crude oil for June delivery sank 4 percent to $98.49 a barrel in New York on May 4, the lowest settlement since Feb. 7.

The London Metal Exchange Index of prices for six industrial metals including copper and aluminum fell 0.4 percent on May 4. The Thomson Reuters/Jefferies CRB Index of raw materials slipped 1.4 percent.

The MSCI Asia Pacific Index (MXAP) gained 9 percent this year through May 4, compared with an 8.9 percent advance by the S&P 500 and a 3.5 percent increase by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 1.3 times book value, compared with 2.2 times for the S&P 500 and 1.4 times for the Stoxx 600, according to data compiled by Bloomberg. A number below 1 means companies can be bought for less than value of their assets.

Related Post:

Asian curancy market outlook may 8 2012

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Indonesia stock info - Asian curancy market outlook may 8 2012 ; Main focus was on the Eurozone, in particular fears that the Greek election had failed to secure a majority for the ND and PASOK parties that had backed the austerity measures. Also of concern, but largely expected, was the victory of Socialist Hollande over incumbent Sarkozy in the French election. EUR/USD tumbled to a low of 1.2955 as equity futures also took a hit and yields in Spain and Italy bounced. However, losses gradually unwound through the course of the session, and while not completely in EUR/USD, Italian yields eventually closed lower, Spain's near unchanged and German bund yields increased. A 2.2% rise in Mar German manufacturing orders helped sentiment to recover.

Treasuries saw a thin but positive European session as yields dipped sharply in reaction to Sunday's French and Greek elections. There was no domestic data to drive the trade in NY hours, but Tsys gave up gains amid an equity retracement, with inbound long-end supply weighing on the curve. The market dipped back to flat into the European close and remained there into the close. 2s unch @ 0.25%, 5s unch @ 0.78%, 10s unch @ 1.88%, 30s unch @ 3.07%. US equity futures fully reversed losses driven by Europe with subsequent trade quiet with little domestic news. The S&P closed up a marginal 0.04%. Though Dow closed -0.23% at 13,008.83 - just above key 13,000.

Asian bourses may see some recuperation after yesterday's bloodshed, while profit taking in USD/Asians should help restrain bulls in today's session, alongside the bounce in EUR/USD. On the data front, South Korea PPI retreated to a 26-month low of 2.4% y/y in April following a decline in food costs. Lower inflation readings may provide room for BOK to keep policy rates at accommodative levels in the upcoming MPC meeting.

OVERNIGHT NEWS HIGHLIGHTS

- US: Mar consumer credit +$21.4bn versus expected $9.8bn.
- Gold Spot: $1,638.55/oz (-0.22%)
- ICE Brent front contract: $113.16 ($-0.02)
- Nymex WTI front contract: $97.94 ($-0.55)
- Reuters/Jefferies Commodities Index: 297.46 (+0.10%)
- 10y UST: 1.872% (-1bp)
- DJI: 13,008.53 (-0.23%); S&P: 1,369.58 (+0.04%); Nasdaq: 2,957.76 (+0.05%)

ASIA NEWS

- China: Historical evidence shows it's possible to see the exchange rate overshooting when a currency reaches an equilibrium, which would hit the economy badly, according to Yi Gang, head of SAFE; he added that China cannot rue out the possibility of this happening and should strictly guard against it.- Caixin Media

- China: Beijing authorities rejected the applications of 14,000 home buyers last year as part of efforts to curb housing prices. More than 90% of approved home buyers were first-time buyers (Xinhua).

- South Korea: PPI eased to 26-month lows at 2.4% y/y in Apr (prev: 2.8); -0.1% m/m.

- Singapore: SGX Chairman Chew Choon Seng said the Singapore Exchange is not bidding for London Medal Exchange.

- Malaysia: According to the Malaysia Palm Oil Board, the country may announce a plan in the near future to compete with top supplier Indonesia which reformed its export taxes to boost its refining industry.

- Indonesia: BI Dep Gov Halim Alamsyah said that the economy can grow 6.3-6.5% in Q2.-BBG

- India: RBI eases rules for miscellaneous purpose FX remittance.-BBG

- India: The country plans a 20% cut in Iran oil imports this fiscal year, with Secretary of State Clinton pressing India to cooperate with U.S.-led sanctions against the Middle Eastern nation.- BBG

- Philippines: Oil firms plan to cut pump prices. -ABS-CBN

CURRENCIES:

- EUR/USD post weekend FX reaction reached its zenith in the Asia session, hitting a low of 1.2955 in direct response to the socialist win (Hollande) in France, and the loss of 'power' by the 2 main parties in Greece. Through Monday's European session, the EUR looked to recover across the board, with Middle East accounts were doing much of the buying. A further prop for the EUR came in the form of a strikingly strong set of factory orders for Germany. EUR/USD stabilized around 1.3055.

- USD/JPY was held within 79.50-80.00 limits through the day, but moved towards the upper end. EUR/JPY was more active, falling to 103.22 before retracing the bulk of the los ses.

- GBP/USD came within striking distance of 1.62 as EUR/GBP, which had earlier fallen to 0.8033, recovered less of its losses than EUR/GBP. It was no surprise to see the SNB soaking up all the pressure at 1.2000 in EUR/CHF.

Treasuries saw a thin but positive European session as yields dipped sharply in reaction to Sunday's French and Greek elections. Focus fell on the Greek elections, where a splintering of the leading parties has the market worried that the country will not pursue its austerity track and that the bailout will unravel. There was no domestic data to drive the trade in NY hours, but Tsys gave up gains amid an equity retracement, with inbound long-end supply weighing on the curve. The market dipped back to flat into the European close and remained there into the close. 2s unch @ 0.25%, 5s unch @ 0.78%, 10s unch @ 1.88%, 30s unch @ 3.07%.

- Agency Spreads: Freddie/Fannie 2s +0.2/+0.2 bps, 5s -0.7/-0.1 bps, 10s -0.4/-0.4 bps.

- Swap Spreads: 2s +0.62bps, 5s 0.00bps, 10s -0.25bps.

EQUITIES:
US equity futures fully reversed losses driven by Europe with subsequent trade quiet with little domestic news. Financials outperformed. Oil and gas were initially underperforming on price losses but recovered to near neutral as oil prices came off their lows. The S&P closed up a marginal 0.04%.

NORTH ASIA

USD/CNY: 1Y NDF stabilized mostly in the 6.3500-6.3550 region overnight before seeing fluctuations in the wider 6.3450-6.3550 band this morning. Pair is poised for some choppy trading though gains are likely to fade in the session with topsides guarded by the 6.3600 mark.

USD/HKD: Spot remained largely supportive in overnight trades in the 7.7610-7.7640 region, though the initial recovery in EUR/USD and potential rebound in stock markets may help upward momentum dissipate; 7.7640 is likely to cap topsides in the near-term.

USD/ TWD: Minimal overnight 1M NDF trades dealt at 29.27 and closed lower at 29.26/29.29 from 29.29/29.32 at open. Corrective upmove in spot is likely to find resistance at 29.355, while pair may see slippage towards the 29.241 support in the coming session.

USD/KRW: High volume of overnight 1M NDF trades dealt in the 1136.50-1138.50 range and closed lower at 1136.00/1137.00 from 1138.50/1139.50 at open. Spot is likely to see some hindrance to further upticks on potential profit taking and a firmer EUR/USD. Look for a test of the 1137.60 support, ahead of 1135.65.

SOUTHEAST ASIA

USD/SGD: Pair glided throughout the overnight session to trade slightly above the 1.2450 support on the back of a firmer EUR/USD. Spot prices are likely to be biased on the downside, with topsides capped by the 1.2475 mark.

USD/MYR: Moderate volume of 1M NDF trades overnight in the 3.0590-3.0610 range and closed a tad firmer at 3.0590/3.0620 from 3.0580/3.0610 at open. Spot to see upsides restricted today while pair may test the 3.0500 support ahead of 3.0465.

USD/IDR: Minimal trades on the overnight 1M NDF front, and pair closed lower at 9275/9285 from 9290/9300 at open. Spot is likely to see upsides fade further, with 9240 acting as the resistance and 9203 as the immediate support.

USD/THB: Onshore markets return from the long-weekend. Spot saw narrow range trades around 30.90-31.05 in the overnight session and oscillated at the 31.0 mark this morning. 31.055 resistance should cap topsides today, with subsequent trade action may be biased on the downside.

USD/PHP: 1M NDF saw moderate volume of trades in the 42.37-42.44 range and closed lower at 42.35/42.41 from 42.45/42.50 at open. Spot may open softer, with subsequent trades to be restricted by the 42.440 hurdle. Look for a possible break of the 42.320 support.

USD/INR: 1M NDF saw high volume of overnight trades in the 53.28-53.35 range and closed lower at 53.23/53.28 from 53.28/53.32 at open. Spot tumbled in the previous session on overbought conditions, also fanned by Finance Minister's comment on GAAR. We do not rule out further downsides, with 52.865 support at risk ahead of 52.585.

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