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US dollar swap spreads continued to crunch lower this week, leaving 10 year spreads lower than at any time since mid-summer 1998. At the close of trading yesterday (Thursday) the five year mid-market was 58bp over the new 3.5% Treasury due November 2006, while 10 year spreads were about 60bp. The 10 year is about 3bp softer than a week ago. The Federal Reserve's decision to take the Fed Funds rate to 2% on Tuesday seems to have had little effect on swap spreads.

Croatia Deutsche Bank has been mandated to arrange a $150m credit for the Croatian Roads Company (HAC).

The European Investment Bank will next week launch a Eu5bn five year global Euro Area Reference Note (EARN), which should be the supranational's most faithful expression of the principles outlined when it launched the benchmark programme in March 1999. And bankers, who have regularly criticised the supranational's apparent lack of commitment to its stated goal of being "a non-opportunistic issuer of euros in terms of benchmark funding", believe that the EIB will successfully grasp the opportunity to revitalise its reputation in the international markets.

The European Investment Bank will next week launch a Eu5bn five year global Euro Area Reference Note (EARN), which should be the supranational's most faithful expression of the principles outlined when it launched the benchmark programme in March 1999. And bankers, who have regularly criticised the supranational's apparent lack of commitment to its stated goal of being "a non-opportunistic issuer of euros in terms of benchmark funding", believe that the EIB will successfully grasp the opportunity to revitalise its reputation in the international markets.

Premier carrier Emirates Airlines this week gave a much welcome fillip to the aerospace industry when it announced plans to invest $15bn in 68 new aircraft. Typically, 20% of aircraft financing is raised from equities, and loans bankers were gleeful at the thought of funding 80% of the jumbo order.

Guatemala * Republic of Guatemala

France Télécom this week proved that the depth of the euro market is back to its pre-September 11 level by executing a Eu5bn transaction in just two days, completing what is expected to be Europe’s last jumbo telecoms issue this year.

France Télécom this week proved that the depth of the euro market is back to its pre-September 11 level by executing a Eu5bn transaction in just two days, completing what is expected to be Europe’s last jumbo telecoms issue this year.

* BOS International (Australia) Ltd Guarantor: Royal Bank of

* Caisse Nationale des Caisses d'Epargne et de Prévoyance Rating: AA/Aa2/AA

Germany and the US were the dominant nations trading in euro as last week drew to a close. Eleven notes were issued in all for $1.05 billion. BNP Paribas and Deutsche Bank teamed up to co-lead-manage a five-year euro600 million ($538.46 million) note for Household Finance Corp. The note pays an annual coupon of 5.000% and is priced to yield 136bp over 4.500%. Deutsche Bank was also busy acting as bookrunner on a euro200 million MTN for GE Capital Australia Funding. The note goes out for just one year and carries a coupon of Euribor flat. Merrill Lynch was another US issuer that was active. It closed a three-year euro15 million note that pays an annual coupon of 1.500%. As well as lead-managing trades, Deutsche Bank came to the market with a euro4 million note that matures on May 16 2003. The note pays a coupon of 4.600% semi-annually. Landesbank Sachsen did a euro50 million MTN that matures on May 9 2003. The note was a straight floater that carries a coupon of 3m Euribor-1/2bp. And Landwirtschaftliche Rentenbank closed a four-year euro20 million note that pays a coupon of 3.250% on a semi-annual basis. The non-call note was led by Tokyo-Mitsubishi International and was targeted at retail investors on Japan. Two issuers went out for around six years. ABN Amro did a euro5 million note that matures on December 5 2007. The note carries a coupon of 3.750%. And Barclays Bank closed a euro10 million note that matures on January 12 2007.

Eleven euro trades were closed on Monday with a good mix of maturities. GE Capital Australia Funding was the only issuer looking for large volume. It followed up a euro200 million ($181.18 million) note from last week with a euro600 million FRN via Dresdner Kleinwort Wasserstein. The note has a three-year tenor and carries a coupon of 3m Euribor+5bp. ABN Amro Bouwfonds Nederlandse Gemeenten did the longest-dated trade - a ten-year euro50 million note that pays an annual coupon of 4.900%. Banque Generale du Luxembourg self-led a euro7.60 million MTN. The note carries a coupon of 11.510% and matures on May 8 next year. The note is a reverse-convertible on a European insurance company. Banco Comercial Portugues looked to mid-range maturity, with a euro3 million note that matures on September 28 2006. The trade has a single coupon of 7.200%. Goldman Sachs lead-managed a euro37.87 million note for Hamburgische Landesbank. The trade is linked to the EuroStoxx50 index. Other German issuers were also busy. Volkswagen International Finance closed a euro25 million note that pays interest on a monthly basis. It matures on May 13 2002. And Landesbank Sachsen did a two-year euro5 million MTN.