THE STEADY flow of new issues continued in the dollar market this week and, under this inexorable pressure, dollar swap spreads have waned. By Thursday, two year spreads were down to about 43bp, while five year spreads were at 61bp and 10 years were 71.25bp. These prices are at least 3bp tighter than at the end of last week. Short end spreads are now at -- or very close to -- the levels they held before the explosion in the credit markets at the end of last summer. At that end of the curve at least, spreads appear to be at the bottom of the trading range.
April 30, 1999