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Debt management officials from EU member states met with tax legislators on Friday for the latest in a series of discussions on the use of fungible bond issues under the proposed European Union savings tax directive. Bankers warned that the concerns raised in the meetings could delay the appearance of the draft savings tax directive, which is due for publication on or around March 1.

Ten year swaps rose at the end of this week. By the close of trading yesterday (Thursday) the mid-market at 10 years was 97.5bp over the new 5% February 2011 Treasury, while the mid-market at five years was around 82.5bp over the reopened 5.75% Treasury due November 2005. These prices were off the highs of the day. Earlier in the afternoon, the five year had dealt at 86bp and the 10 year at 99.75bp. Although five year spreads are little changed from a week ago, the 10 year is at least 4bp wider.

A resounding new corporate benchmark was created for the Asian market this week, when Hutchison Whampoa launched a $1.5bn 10 year bond. The deal is the largest single tranche corporate bond from non-Japan Asia, and follows Hutchison’s last foray into the debt capital markets in 1997, when it arranged a $2bn multi-tranche bond offering.

Mark Grotevant, group head of telecommunications and media, leveraged finance research at Credit Suisse First Boston, told delegates at the Euromoney International Bond Congress today that he expects high yield telecoms bonds to earn excess returns in 2001.

ndia Responses are due today (Friday) for the $48m, 4-3/4 year funding for Hindalco Industries, arranged by BA Asia.

Analysts from ING Barings gave an unorthodox view of the emerging European local currency bond markets at the Euromoney International Bond Congress today, saying that investors would do well to hire a meteorologist alongside their usual researchers.

The Republic of Ukraine is carrying out the long awaited completion of its Eurobond swap, lead managed by ING Barings and first launched in March last year, with an offer to replace the remaining DM28.7m (Eu14.7m) holdings of its 16% 2001. The deal marks a small milestone on the country's return to favour in the international markets, after it narrowly avoided default in the wake of the collapse of the 1998 Russian GKO market and devaluation.

Globals * Federal Home Loan Banks

* Bank of Nova Scotia Rating: Aa3/A+/AA-

Hannes Leitgeb Aged 44 Head of treasury and asset management, Vorarlberger Landes-und Hypothekenbank How long have you been in MTNs? We signed our Euro-MTN programme on September 20 1999 and issued our first private placement exactly two months later on December 20 1999. What is your favourite part of the job? We like wheeling and dealing, therefore we like to be flexible in our targets to a certain degree in order to accommodate our order-flow. Who is your favourite dealer of the month? We appreciate any dealer that is fast when it comes to execution. Lately this has been Nomura, early last year it was Deutsche Bank. But Credit Suisse First Boston, UBS and JP Morgan have also done a great job. What has been the most interesting trade you've seen in the last few months? When we achieved Libor-49 bps funding in yen. What do you think will be the most important trend in the next quarter? As far as Vorarlberger goes we hope yen dual currency private placements will continue to yield our funding targets. What annoys you most about the market? We are pleased with the entire market. As an issuer (and therefore customer) we have the choice to deal with the most professional and friendly people only. Which of your competitors do you admire most and why? We do not have any competitors at all (in Austria!) If you weren't an MTN issuer, what would you be? A gentleman farmer on an estate in Austria. What car do you or would you like to drive? I drive a VW Golf but would like to drive a big fat Mercedes. What's your favourite restaurant? The Bombay Brasserie, London.

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The Arab Republic of Egypt has finally mandated for its minimum $500m five to 10 year inaugural Eurobond, choosing Merrill Lynch and Morgan Stanley Dean Witter, in line with many bankers' expectations. Lead managers said that launch is still a month or two away, because of the paperwork and market testing needed for Egypt as a first time issuer.