Business news for Mon, 24 Dec 2007 & with words expectations+prices. 3 news.

INDIA, the world's second-biggest wheat consumer, scrapped a tender to buy 350,000 tons of the grain after balking at higher prices amid expectations domestic production will be the highest in seven years. "Prices are too high," India's Commerce Secretary G.K. Pillai said in a phone interview with Bloomberg News in New Delhi yesterday. "We will take a decision on importing more wheat after the next wheat crop." The country should meet an output target of 75.5 million tons, the most since 2000, the farm ministry said on December 18. India, importing wheat for a second year to boost state reserves, may wait a few months before issuing a new tender as it expects prices to fall. Wheat rose above US$10 a bushel in Chicago for the first time on December 17 after concerns dry weather in Argentina, the world's fourth-biggest exporter, will shrink global supplies. "We may not import wheat as of now," Pillai said. Government-owned State Trading Corp on

LONDON — The British pound hit record lows against the euro on Monday for the second straight day, weighed down by falling home prices and expectations that the Bank of England will keep cutting interest rates.

SAN FRANCISCO (MarketWatch) -- Treasurys were slightly lower Monday, pushing up yields, as firm stock prices decreased the appeal of fixed-income assets in extremely thin pre-holiday trading. U.S. bond trading will end early on Monday, and overnight Japanese and German markets were closed Monday for holidays. "With the holiday-shortened week, our expectations for any paradigm shifting events are pretty light," said David Ader, U.S. government bond strategist at RBS Greenwich Capital. "With the bench players now in the field until the New Year, we would err on the side of limited conviction for any moves over the next few trading sessions." The benchmark 10-year Treasury note was down 7/32 at 100 12/32, with a yield of 4.2%. The 30-year bond was down 10/32 at 106 9/32 with a yield of 4.61%. The two-year note was down 2/32 at 99 26/32 with a yield of 3.21%. On Wednesday, the Treasury Department will sell $22 billion in two-year notes, and on Thursday, it will sell $13 billion in five-year notes.