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Dollar swap spreads continued to crumble this week. The weakness of the bid was most evident at 10 years, which by yesterday (Thursday) afternoon had come in to a mid-market of 115bp over the 5.75% August 2010 Treasury. This was about 9bp tighter than a week earlier and 11bp tighter than on September 12. Continued new issuance and the threat of more to come have exerted great pressure on swap spreads, while there has been little countervailing asset swap business, said dollar dealers.

Egypt The Egyptian government will offer 20% of Telecom Egypt by the end of November raising around $1bn.

Czech Republic Commerzbank Securities will lead manage domestic bond issues totalling Ck10bn ($239m) for Skoda Auto, a subsidiary of Volkswagen.

Bookbuilding for New Skies Satellite's Eu362m IPO began on Wednesday. The Amsterdam and New York listing has ABN Amro Rothschild, Goldman Sachs and Morgan Stanley Dean Witter as global co-ordinators and joint lead managers for the deal. A total of 28.5m new shares will be sold representing around 22% of the company following the deal. American Depositary Shares representing one share will be sold in the US. A range of Eu10.42-Eu12.73 ($9-$11) has been set.

Lehman Brothers has appointed Maureen Erasmus as head of European strategy. She joins as a managing director, and will sit on the European operating committee. Erasmus reports to Nigel Glaister, European CAO, and to Jim Rosenthal, global head of strategy. She has spent 17 years as a management consultant, and joins from AT Kearney, where she headed the financial services operations.

New Zealand Dairy Board has dropped NatWest Global Financial Markets as a dealer off its $1 billion Euro-CP programme. Moody's has assigned a P-1 rating to the issuer.

Market report: Compiled by Glenn Blackley, RBC DS Global Markets, Australia. Tel: +61 2 9373 0431

Northern Rock has increased the ceiling on its Euro-CP shelf to $2 billion from $1 billion.

* Kommunalbanken AS Rating: Aaa/AAA/AAA

New issuance is about to resume on the Nuovo Mercato after the summer break. Although half of the companies listed this year on the market are trading below their issue price, and Datamat, Dianos and Kataweb are eager to list by the end of the year. The price range for Datamat, the financial software company, has been set between Eu18 and Eu24, valuing the company at between Eu375m and Eu500m. After the IPO, 25% to 30% of the company will be floated. The offer is of 75% new shares and 25% old shares. Roadshows will start on Monday.