text: Italy tops week of meagre bond returns - Salomon. LONDON 1996-12-06 
   High-flying Italy topped the league in a week of meagre returns on government bonds, Salomon Brothers said on Friday. In local currency terms, Italian BTPs offered returns of 0. 85 percent in the week ended on Thursday, with fellow high-yielder Sweden close behind on 0. 80 percent. The weekly government bond index rose 0. 07 percent in local currency terms. France managed third place with 0. 68 percent in the 16-nation world government bond index. Canada's were the worst performing bonds. They lost 2. 21 percent, depressed by a wave of new Canadian supply. Returns on Treasuries were also in negative territory at minus 0. 24 percent, the poorest result after Canada and British gilts which lost 0. 28 percent. Australia was the only dollar-bloc country in the table to eke out a positive return, albeit a paltry 0. 02 percent. German Bunds were not much better, offering returns of 0. 05 percent, while Japanese government bonds managed a 0. 38 percent gain. Spanish bonds, which had been top performers in Salomon Brothers' league table for November as a whole, turned in a more subdued weekly performance with a return of only 0. 27 percent. In U. S. dollar terms, Japan was the only country to give positive returns at 1. 35 percent. France lost 0. 37 percent, followed by Italy on minus 0. 59 percent. The biggest losers in dollar terms were British gilts, which shed 3. 41 percent, Canada with minus 3. 03 percent and Australia at minus 1. 54 percent. Salomon's bond index is calculated using all government bonds with over one year to maturity, weighted for market capitalisation. Only bonds freely available to institutional investors and with a certain minimum amount outstanding are included. Returns take account of price moves and accrued interest. --Stephen Nisbet, International Bonds +44 171 6320
competitors: Lithia Motors BorgWarner Magellan Health Services