The 25bp rise in the US Fed funds rate announced after the FOMC meeting on Tuesday set a constructive tone across all the markets, giving most participants confidence that rates will not be increased again before the end of the year. After several months of volatility, some semblance of stability returned to the dollar sector and a rally in corporate spreads allowed Wells Fargo to increase its global transaction to $1.5bn from $1bn. The deal, evenly split into two tranches of a two year FRN and a three year fixed rate bond, was led jointly by Bear Stearns and Morgan Stanley Dean Witter.
August 27, 1999