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France Telecom dominated all trading on Thursday by launching a euro5 billion ($4.47 billion) two-tranche issue off its euro30 billion Euro-MTN programme. The issues are split into a euro2.25 billion euro floating-rate two-year tranche and a euro2.75 billion fixed-rate, four-year note. The floating-rate paper is priced at Euribor+118bp while the fixed-rate note is at 186bp over the OBL 134. Barclays Capital, Credit Agricole Indosuez, Deutsche Bank and HSBC are the bookrunners. Elsewhere, euro was trading frantically as 24 trades were closed. Even without the France Telecom tranche, euro traded in larger volume than both dollar and yen. JPMorgan led a euro791.43 million note that goes out to December 31 2020. The note pays interest semi-annually and has a final coupon of 4.924%. UBS Warburg closed a five-year euro56 million note for ENEL. And Svenska Handelsbanken did a euro165 million note that reaches out to December 28 2011. The note carries a coupon of 5.125% and was self-led, by Handelsbanken Trading.

Freddie Mac reaped the benefit of last week's Treasury announcement with a re-opening of its March 15, 2031 Reference Note. The new bonds raised the deal to $6bn. The agency curve has outperformed swaps in the long end of the market since the Treasury announced the suspension of 30 year issuance.

Because Merrill Lynch has attracted so much adverse press attention in recent weeks, some of our many pals within the firm have asked us if we could possibly come to their rescue. Sorry guys, but this would be rather like King Canute ordering the tide to turn back - in fact Canute was trying to prove to his noblemen that he could not turn the tide back. Indeed, Merrill seems to dig itself into an even deeper hole with every move it makes. That awful memo of October 22 to the staff asking for voluntary resignations will win every award for the worst public relations of the year. We are told that there are more Merrill CVs on the street than those coming out of CSFB or JP Morgan. Further management reshuffles at Merrill in equities and investment banking once more look as effective as applying a plaster to a patient who has stepped on a landmine.

* European Bank for Reconstruction & Development Rating: Aaa/AAA

Sibneft is lining up to be the first Russian corporate to tap the international bond markets since the country's 1998 economic crisis, meaning that it could overtake fellow oil firm Rosneft, which roadshowed its proposed Eurobond two weeks ago, but has yet to issue. Lead managed by ABN Amro and Salomon Smith Barney, the deal is expected to be a $250m three to five year bond. The pan-European roadshow will start next week with launch at the end of the following week.

Deutsche Bahn is set to launch the inaugural issue off its new Eu5bn EuroMTN programme, with bankers expecting a Eu750m 12 year fixed rate issue priced at around 28bp over mid-swaps. The deal will be issued through Deutsche Bahn Finance BV and led by Deutsche Bank, with five international banks as co-leads.

Banca delle Marche has added Credit Suisse First Boston as a dealer off its euro1 billion ($898.50 million) Euro-MTN programme. Banca delle Marche has made five trades so far this year, all in euro, for a combined total of euro660 million.