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BOND markets fell victim to dramatic movements in the Dow Jones and Nasdaq indices this week as equities dropped early in the week, only to rise sharply on Thursday, the Dow posting its highest daily points gain. Credit markets could not ignore the volatility and swap spreads widened too. The euro market fared better than the dollar market, having faced fewer hurdles for most of the year. Even a 25bp rate hike from the ECB on Thursday failed to impact on government bond yields, but as credit spreads began to follow swap spreads wider, issuers had to proceed with caution.

THE PROVINCE of Buenos Aires enjoyed a highly successful return to the dollar markets this week with the launch of a well received $350m 10 year Euro/144A offering via JP Morgan and Merrill Lynch - the issuer's largest and longest dated international bond to date. Originally targeted to emerge at $250m, strong domestic and offshore investor demand for the sole Latin American new issue this week enabled the two US lead managers to grow the transaction to its eventual $350m launch figure.

Market report: Compiled by Jim Webber, TD Securities, London, Tel: +44 207 282 8216

THE PROVINCE of Buenos Aires enjoyed a highly successful return to the dollar markets this week with the launch of a well received $350m 10 year Euro/144A offering via JP Morgan and Merrill Lynch - the issuer's largest and longest dated international bond to date. Originally targeted to emerge at $250m, strong domestic and offshore investor demand for the sole Latin American new issue this week enabled the two US lead managers to grow the transaction to its eventual $350m launch figure.

The Chicago Board of Trade got off to a somewhat embarrassing start when it unveiled its new 10 year agency note futures contract on Wednesday: its Bloomberg quote system broke down, leaving users with no access to live prices. "We got off to a rocky start," admitted a CBOT official.

ABN AMRO completed a Eu450m convertible bond offering for Dutch IT solutions firm Getronics yesterday (Thursday) following a wave of equity-linked issuance last week. The company sold the five year bonds with both the yield to maturity and conversion premium coming in the middle of indicated ranges.

Ten year dollar swap spreads traded at 112.5bp over the 6.5% February 2010 Treasury yesterday (Thursday), perilously close to the 117bp intra-day price of August 1999 and the levels seen during the Asian crisis of 1998. At the beginning of the year - when 10 year swaps were trading around 80bp - most dealers had expected swap spreads to compress over the near term. But they had counted without the effect of the Treasury buyback programme.

* DePfa Deutsche Pfandbriefbank AG Rating: Aa3/AA (Moody's/Fitch IBCA)

Romania The Romanian Ministry for Public Works has received a $120m loan to build housing and water systems in Romanian villages.

Argentina * Province of Buenos Aires

* Banca Agrileasing SpA Rating: A-/A- (S&P/Fitch IBCA)