Interest rates

* Aso says China took step in right direction with relaxation of  bank lending rates

RBI NEWS

RBI says receives 87 bids for 46.14 bln Rupees at 2042 bond auction 

US OUTLOOK/OPINION: Jefferies says the data calendar is light next wk, "but will...

US OUTLOOK/OPINION: Jefferies says the data calendar is light next wk, "but will  feature housing, manufacturing, and consumer confidence reports.  There are no  Fed speakers scheduled due to the impending blackout period ahead of the July  30th-31st FOMC meeting.  The NY Fed Open Market Desk will be in with 5 purchases  for as much as $12.5 bln.  Treasury will come with a package $99 bln in 2-, 5-,  and 7-year note supply in addition to the bill calendar." Trading is likely to  be most heavily influenced by technical factors and supply could cause  consession in the belly while Fed buys support bonds. "We like curve  flatteners."

US OUTLOOK/OPINION: We're seeing some notes about the BLS Jun state jobs...

S OUTLOOK/OPINION: We're seeing some notes about the BLS Jun state jobs...

US OUTLOOK/OPINION: We're seeing some notes about the BLS Jun state jobs  breakdown after it was leaked early on Thurs, along the lines that leisure jobs  (+75k in the national number, of which +52k was at restaurants, out of the +195k  Jun gain) had their biggest gains in states in the West where unemployment was  lower than avg. Those states also have big energy operations, "and some have  large trout and steelhead extraction operations as well" a source says. Game  officials are not seeing an upsurge in licensing according to this source, thus  it appears the new jobs are support-jobs for the energy sector; in that sense  they must be considered 'real' rather than an employer ploy to avoid new  insurance rules.

Crude closed

* Brent Crude futures settle at $108.07/bbl, down 63 cents, 0.58 pct