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ARBITRAGE remains painfully thin for issuers in euros. At the end of the week, three year bids were around 3.22%, five year bids were at 3.52%, and 10 year bids were 4.12%. On a spread against Bunds this was equivalent to about 16bp, 19bp and 32bp respectively. This gives no borrower, even the most creditworthy, the opportunity to swap out of fixed at an attractive level.

EQUITY capital market professionals are lining up a string of offerings from Spain in the next few weeks to tap the strong demand shown by the recent successful flotation of Transportes Azkar, the Spanish parcel delivery firm. Azkar's shares, which were led to market by bookrunner Argentaria, rose this week to Eu12.90 from their issue price of Eu11.25, giving confidence to other potential issuers. "Many highly respected companies that found conditions too unpredictable last year will seek a stockmarket listing in the coming months," said one new issue professional in Madrid. "Although Europe's equity markets are still volatile, the Madrid market is inspiring strong interest from local and international investors."

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AFTER several weeks of gentle decline, 10 year dollar swap spreads yesterday (Thursday) spiked up suddenly. At midday the mid-market was around 78bp, at least 2.5bp wider than on Wednesday. Goldman Sachs led the charge at 10 years, and by Thursday lunchtime was thought to have paid on around $500m during the previous 24 hours. Before long, other houses, presumably those sitting on short positions, also came into the market to pay fixed.

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* Bank Austria AG Guarantor: City of Vienna

BANK Przemyslowo-Handlowy SA (BPH), the Krakow-based private bank, has mandated HypoVereinsbank to arrange a Eu75m three year term loan. The facility carries a margin of 35bp over Euribor. The mandate marks BPH's second foray into the market -- its first being in September 1997 when it raised a $75m revolving credit through arranger Sumitomo.

WHO IS MIKE O'Neill? You may well ask. Before you could say, 'is Barclays Bank behaving like Bonkersbank?' Sir Peter Middleton and Andrew 'Pandy' Buxton had appointed Mike O'Neill, an unknown West Coast surfer and beach boy, to be chief executive of Barclays. Are the Barclays board members two onions short of the perfect bhaji? Did Any 'Pandy' Buxton lift his hand by mistake at the East Anglian woolly sheep auctions and walk away with a special prize?

THE INTER-American Development Bank launched a $1bn two year bond on Thursday, the latest in what it intends to be a $9bn spending spree in the international markets this year and the second global bond in a fortnight. The deal, led by Goldman Sachs and Warburg Dillon Read, was priced at 99.964 to give a spread of 35bp over the 4.5% January 2001 Treasury. It is the IDB's second ever global bond, and follows on from its $1bn five year deal, led by Deutsche Bank and Goldman Sachs in January.

* General Electric Capital Corp Rating: Aaa/AAA

Market commentary: Compiled by Glenn Blackley, RBC DS Global Markets, London. Tel: +44 171-865 1759

PART ONE OF the long awaited financing for the Channel Tunnel Rail Link finally reached the market this week -- and lead managers HSBC and Warburg Dillon Read achieved a much better price for the £1.65bn of UK government guaranteed bonds than expected.