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MERRILL Lynch has landed two prize mandates for the second quarter, whose progress will be closely watched by market participants. The firm will lead the secondary offering for Global Telesystems Group (GTS) which filed this week for the sale of 10m shares. The deal could raise around $650m based on its current stock price of $65.

THE REPUBLIC of Hungary this week achieved its long held ambition of becoming the first central and eastern European borrower to issue a SEC registered global bond. Bookrunners ABN Amro and Salomon Smith Barney yesterday (Thursday) launched the Baa2/BBB rated transaction which had been delayed for two weeks in the wake of the Nato air strikes against Serbia, with which Hungary shares a border. The seven year issue, which emerged for $500m versus an original $750m target, will be priced at 14:00 GMT today (Friday) at a launch spread of 145bp over the off-the-run 5.625% February 2006 US Treasury, equivalent to 164bp over the curve.

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IT IS THAT end of the quarter time of the year again when fixed income chieftains and syndicate heads either dance in the streets, drown their sorrows or try to slink under the nearest stone. What a rock 'n' roll quarter it has been with the arrival of the euro -- combined with the February collapse of the Treasury market, which was the worst monthly setback since 1980.

India The first roadshows were held in London on Tuesday and in Paris today (Thursday) for the $165m 10 year limited recourse shipping facility for the Enron Mitsui LNG carrier.

THE EUROPEAN high yield bond market continued to revive this week, with sterling deals from UK cable operators Telewest and NTL Communications Corp, and specialist materials producer Luxfer generating enormous demand. European high yield issuers have been wary of coming to the market since the autumn 1998 Russian debacle exstinguished investor appetite for risk.

GLOBAL co-ordinator Merrill Lynch reports a strong response from European institutional investors to the $130m-$150m flotation of MIH, the British Virgin Island-based multinational pay TV service company. The book is already twice covered ahead of the deal's pricing on Monday night. Roadshows have been completed in Europe and will continue in the US today (Friday) and on Monday ahead of pricing.

ISBANK -- out of all the Turkish banks that have invited international banks to bid for arranging mandates -- is closest to launching a transaction into the market. A mandate should be awarded next week. Isbank is approaching the market for a refinancing of its $200m (increased from $150m) one year term loan that was signed in April 1998. Bankers say that the amount will be smaller than the 1998 facility and the margin will be higher.

PRICES on Kazakh Eurobonds held up strongly this week in the face of a surprise devaluation of the Kazakh tenge. On Tuesday the Kazakh authorities gave up their fight to support the currency; once allowed to float, the tenge slumped from last Friday's level of Kt88.3/$ to Kt150/$, before recovering to Kt112/$ yesterday (Thursday).

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LATIN AMERICAN issuers are racing back to international bond markets to take advantage of a sea change in investor sentiment to the region in recent weeks.