In the wake of the current deteriorating regional situation and the financial crisis in Turkey, the Lebanese eurobond market witnessed some downward pressure on prices across the maturity spectrum.
Last week’s $50 million issue by Banque de la Mediterranee and the previous tap issue on the sovereign 2004 could not help the prices of almost all sovereign and corporate bonds from declining further. The market was subject to a lack of bids from local buyers while offers came in from international bond investors to cover losses from Turkish debts.
US Treasuries shifted into positive territory this week after plunging for three consecutive sessions as the government reported significant gains in January consumer prices. The week-close surge in short-term treasuries came as a result of notable losses in major stock indexes, slumping to two-year lows and stirring hopes of further interest rate cuts at the next Fed meeting on March 20th .
The Labor Department reported that its Consumer Price Index (CPI), the main gauge of US inflation, rose 0.6 percent in January compared to a 0.2 percent gain in December 2000. Market watchers expect the Fed to wait at least until consumer confidence and manufacturing surveys are published before making any move. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)
