The Eurobond market had a quiet week, with investors showing some interest in Banque Audi’s 2007 eurobond, Lebanon’s 10-year sovereign issue and the new issue maturing in 2005.Talks about a possible issuance of yen-denominated bonds remain vague perhaps due to the non-existence of customers for such a bond at present. On the other hand, market interest for the interest-free eurobond launched last month, following the suggestion of Lebanese expatriates at a conference to support the economy, still seems to be very limited. Despite an abbreviated week due to the July 4th holiday, benign data this week helped bolster US Treasuries. The slower growth in the manufacturing sector, expanding at its slowest pace in 17 months as the NAPM price index fell to 61.2 in June from 65.8,showed that the Federal Reserve’s crusade to slow growth may be succeeding.
Moreover, an expected unemployment rate dropping to 40rom 4.1%in May and average hourly earnings rising 0.4%in June, following an increase of 0.1%in May, left people in a positive frame of mind. On the other hand, easing oil prices due to Saudi Arabia’s decision to raise output boosted fixed income markets.