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THE REPUBLIC of Argentina created what will ultimately be an Eu1.8bn benchmark this week by launching an Eu250m bond fungible with its 2008 European currency line. The deal, led by Morgan Stanley Dean Witter and ABN Amro, carries a 14% up-front coupon that steps down to 8% in 2001, when it becomes fungible with the Eu350m offering with a 15% upfront coupon stepping down to 8% that Morgan Stanley underwrote for the republic in February.

BRAZILIAN banks are hoping to begin their comeback in the international debt markets, with both Bradesco and Banco Citibank looking to price deals as early as today (Friday). In an important test of investor appetite for Brazilian risk Bradesco, Brazil's biggest private sector bank, will issue a $100m dollar denominated one year Eurobond and Citibank is expected to place about $100m of six month notes.

THE REPUBLIC of Lithuania made its long awaited debut in euros this week with a Eu200m five year Euro/144A offering. Lead managed by Credit Suisse First Boston and Dresdner Kleinwort Benson, the Ba1/BBB- rated transaction's launch had been frustrated for several weeks by unsettled market conditions.

THE KINGDOM of Morocco launched its debut euro offering this week. Lead managed by CCF Charterhouse the Eu138.7m five year issue bore a partial guarantee from France's triple-A rated Agence Française de Développement, which covered 100% of principal and 50% of coupon payments on the Ffr1bn equivalent transaction. AFD's guarantee effectively left investors exposed to just 8% Moroccan risk. The par priced issue featured a 3.95% coupon to give a spread of 55bp over the 5.5% April 2004 OAT -- at the tight end of the 54bp-58bp price talk.

TELECOM Argentina became the first major Latin corporate to tap the euro denominated bond market when it launched a Eu150m five year offering this week. The deal, led by JP Morgan, came at 500bp over Bunds, considerably tighter than the 627bp over level that the Republic of Argentina offered on its five year euro issue launched in early February.

THE FATE of the Republic of Hungary's $750m seven year global bond via ABN Amro and Salomon Smith Barney hangs in the balance ahead of its planned pricing today (Friday). Nato air strikes this week against Serbia, with which Hungary shares a border, caused spread volatility in all central and eastern European issues.

MEXICO BROKE the drought of plain vanilla Latin global issues this week by launching a $1bn six year deal, the first dollar-denominated bullet bond since Brazil's devaluation. Morgan Stanley Dean Witter beat Chase, Lehman and Salomon Smith Barney in a fierce bidding contest to bring the United Mexican States back to the international markets with a deal at the shorter end of its yield curve.

THE REPUBLIC of Panama took the markets by surprise this week when it launched a successful $500m 30 put seven year bond issue just weeks after it failed to get a 20 year bond deal off the ground. The transaction -- mandated to JP Morgan and Salomon Smith Barney rather than BankBoston, the original underwriter of the proposed 20 year deal -- was priced almost on top of its Panama's 2008 bonds at 405bp over Treasuries. It was also increased from its initial size of $300m.

MEDIAONE Group of the US and Cable & Wireless (C&W) of the UK have announced plans to spin off One-2-One, the UK mobile phone operator. The two owners are considering their options, including a trade sale or a stockmarket flotation. Merrill Lynch is advising C&W, while Lehman Brothers is advising MediaOne.

DEUTSCHE Bank, Dresdner Kleinwort Benson and Goldman Sachs are advising Deutsche Telekom on its forthcoming capital increase. The German telecommunications group announced its intention to raise fresh funds some time ago and market participants have been eager to discover the structure that will be used. Legally the company can raise up to 10% of its equity capital. At current market prices the rights issue could raise around Eu10bn or DM20bn, depending on the number of shares sold. DT shares are presently trading at DM36.90, giving a heady multiple of 60 times.

TECHNOLOGY and financial stocks were behind the broad rally on Wall Street this week as better than expected earnings reports filtered into the market. A small number of blue chip names led by financial services stocks, including Morgan Stanley Dean Witter, prompted the Dow to come close to the dizzy heights of 10,000 that it reached two weeks ago.

CSFB THIS week executed its third convertible issue in three weeks with the Eu350m sale of bonds on behalf of Getronics, the Amsterdam listed hi-tech group. The deal follows CSFB-led issues for Citrix and Swatch in the last two weeks. Getronics sold five year premium redemption bonds with a coupon of 0.25% and a yield to maturity of 2.75% and a conversion premium of 27%, evenly rising to 44% at maturity.