* Moody’s warning on France weighs on Treasuries* Goldman Sachs reports deeper-than-expected lossBy Gertrude Chavez-DreyfussNEW YORK, Oct 18 (Reuters) - U.S. Treasuries edged higher on Tuesday, pushing benchmark yields to their lowest in two weeks, as Moody’s issued a warning on France’s credit rating and expectations faded for a definitive solution to the euro zone debt crisis at the European Union summit later this week.Treasury prices, however, pared gains after a bigger-than-expected increase in U.S. producer prices for September, their largest rise in five months, and strong earnings from Bank of America Corp , the largest U.S. bank by assets. For more on producer prices, see {ID:nN1E79H0CB].That dented gains racked up after a steeper-than-expected loss at U.S. investment bank giant Goldman Sachs . U.S. 30-year bond prices jumped more than a point after the release of the bank’s earnings.The bias in the Treasuries market, however, remained positive, with the appeal of U.S. government bonds enhanced by a slew of negative news around the world including weaker-than-forecast gross domestic product growth in China.”Risk aversion came back because everybody is focused on Europe,” said Suvrat Prakash, interest rate strategist at BNP Paribas in New York.”It seems that people are not counting on the European Union summit,” for a solution on the euro zone’s fiscal problems. “Added to the mix was the Chinese GDP overnight which came in weaker than expected.”Gains in Treasuries gathered pace after rating agency Moody’s said it may slap a negative outlook on France’s triple-A rating in the next three months if the country fails to make progress on crucial fiscal and economic reforms..In addition, enthusiasm has waned for a meeting of finance ministers and central bankers of the Group of 20 major economies on Oct. 23 that was initially expected to come up with a comprehensive solution to Europe’s debt troubles.On Monday, German Finance Minister Wolfgang Schaeuble poured cold water on any positive view about the EU summit. he said European governments will not present an ultimate solution for the sovereign debt crisis at the weekend meeting.In mid-morning trading, benchmark 10-year Treasury prices rose 13/32 in price to yield 2.11 percent compared with 2.18 percent late on Monday. Yields fell as low as 2.08 percent, their lowest since Oct 7.Yields on 10-year notes were not far from 2.27 percent, the 38.2 percent retracement of a July to September rally in the maturity. More support is clustered near 2.3 percent to 2.31 percent, an area containing a few daily highs hit in late August.U.S. 30-year bonds were up 23/32, yielding 3.09 percent versus 3.16 percent on Monday.

“We look forward to resolving this case, so we can continue creating the most innovative mobile experiences for consumers.”HTC had filed a complaint in May 2010, accusing Apple of infringing its patents. It asked the ITC to bar the importation of Apple’s iPods, iPhones and iPads.In February, the full commission will decide whether to uphold or reject the ITC judge’s decision.

Schmitz called for a change in Basel III regulations, which spell out the amount of capital reserves that banks must set aside for so-called risk-weighted assets.Under the current Basel II rules and EU guidelines, all euro zone sovereign debt can be assigned zero risk, which has provided a strong incentive for banks to buy and hold government bonds.”The current situation shows that zero (risk weighting) accounting doesn’t accurately reflect reality,” Schmitz said.”Politicians are not tackling this issue, since it concerns them,” he added, explaining that this exemption has helped sovereign borrowers market their debt to banks.Hesse, the German federal state home to the country’s banking centre of Frankfurt, said late in September it would push for an end to the exemption of capital reserves for central government debt.”The exemption distorts investment markets and sweeps under the carpet the actual inherent risks,” said Hesse’s finance minister, Thomas Schaefer, and its economy minister, Dieter Posch, at the time.At the same time, Schmitz opposed a forced recapitalisation of German banks, because it would only cause further uncertainty in the markets.”Compulsory recapitalisations do not solve the political crisis of confidence,” he said.

LONDON Oct 14 (Reuters) - Vista Equity Partners is facing challenges financing its acquisition of Thomson Reuters’ trade and risk management software business, including flagship product Kondor, banking sources said on Friday.Vista bought the businesses for more than $500 million in cash in September after winning an auction. The private equity company is trying to finalise a larger financing package than originally envisaged, but the deterioration in market conditions since August may limit the size of the loan, bankers said.Vista had agreed a $185 million of drawn debt with GE Capital, ING, Lloyds and Royal Bank of Canada in September, but subsequently tried to increase the amount of debt to $220-$230 million, which was in line with debt offered to rival bidders Cinven, Bridgepoint and Montagu Private Equity, the bankers added.Some of the four banks were unwilling to increase the size of the financing due to market volatility. Vista is currently approaching a wider group of banks after first talking to banks that backed rival bidders.The financing was expected to be decided by early October, but negotiations are still continuing, the bankers said.”Vista is struggling to get the higher amount of debt in place,” one of the sources said.The level of debt Vista manages to raise will not affect the acquisition itself, only the amount of equity Vista will have to contribute.A final sale and purchase agreement for the proposed transaction with news and information services provider Thomson Reuters is expected to close by Jan. 31, 2012. Barclays Capital acted as sole financial advisor to Thomson Reuters.The trade and risk management business operates under the Thomson Reuters enterprise solutions business. Kondor provides trade and risk software as well as liquidity risk systems for treasury and cash management operations. Its main competitors include Misys, SunGard and French software solutions company Murex.Vista and GE were not immediately available to comment.

* Europe remains in focus, better U.S. data shrugged ofBy Gertrude Chavez-DreyfussNEW YORK, Oct 13 (Reuters) - U.S. Treasury debt prices rose on Thursday, with 30-year bonds snapping six days of losses, as a rally in stocks lost momentum after soft earnings from J.P. Morgan and concerns about Europe’s plan to recapitalize its banks.An auction of U.S. 30-year bonds attracted strong interest, with a record low yield of 3.120 percent compared with market forecasts of 3.157 percent. That propelled 30-year bond prices even higher and pushed yields to session lows.The bid-to-cover ratio, which gauges demand by comparing total bids with the amount offered, was 2.94 times, above the 12-month average.Many had expected robust demand at the auction anyway given how much 30-year bonds have cheapened in recent sessions. And for some, the Federal Reserve’s buying of long bonds suggested that these securities offered good value.Overall, most analysts have pinned Thursday’s gains in the Treasury market on the slide in stocks and any caution that has resurfaced could be short-lived.”What we’re seeing is a classic bond market response to modest equity market weakness,” said Jonathan Lewis, chief investment officer, at Samson Capital Advisors in New York, with assets under management of $7.7 billion.”This is a stocks down, bonds up trade, with no material economic catalyst other than we had several days of stocks run-up and bonds sell-off.”Headlines in Europe, however, continued to attract attention, with the latest one suggesting euro zone banks would be given about six months to strengthen their capital under what could be hefty recapitalization schemes.On balance, though, most investors still believe the European crisis is under control and measures are being taken to avert another credit crunch.Volume in the Treasury market was $178.486 billion after 12 pm Eastern time, about 15 percent higher than the 20-day moving average for that time of $155.535 billion, ICAP said.The Treasury market, meanwhile, shrugged off a weekly jobless claims report that many saw as a faintly positive sign for the economy, which would normally spur selling in Treasuries.New U.S. claims for unemployment benefits edged down last week, according to a government report on Thursday that pointed to a modest improvement in the labor market at the start of the fourth quarter.In early afternoon trading, the 30-year bond rose 1-15/32 higher in price, yielding 3.12 percent, down seven basis points from 3.19 percent at Wednesday’s close.Market attention has now shifted to nearby resistance at 3.20 percent, analysts said, corresponding to a series of lows in price that formed between September 6-16.RBC Capital Market’s chief technical strategist George Davis said a daily close above 3.20 would sustain the corrective forces at hand, exposing the 38.2 percent Fibonacci retracement of the July-October decline in yields at 3.35.However, the Federal Reserve’s latest program to lower long-term interest rates, which the market has dubbed Operation Twist, could provide some support for 30-year bond prices.The Fed has pledged to purchase a hefty portion of 30-year bonds over the coming months, reducing supply in the Treasury market. This could increase the bonds’ appeal at auction.The benchmark 10-year Treasury note , meanwhile, was up 15/32 in price and was last yielding 2.15 percent, down 6 basis points from Wednesday.